Ronald Zepik v. Tidewater Midwest, Inc.

856 F.2d 936, 1988 U.S. App. LEXIS 12800, 1988 WL 95583
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 12, 1988
Docket87-3021
StatusPublished
Cited by31 cases

This text of 856 F.2d 936 (Ronald Zepik v. Tidewater Midwest, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ronald Zepik v. Tidewater Midwest, Inc., 856 F.2d 936, 1988 U.S. App. LEXIS 12800, 1988 WL 95583 (7th Cir. 1988).

Opinion

CUDAHY, Circuit Judge.

Ronald Zepik was injured while diving into an in-ground swimming pool at the home of some friends. He brought suit in federal court against four manufacturers of swimming pool components and a pool supply company raising claims based on the Consumer Products Safety Act (“CPSA”) and on a variety of pendent state law theories, including strict liability, negligence, willful and wanton misconduct and breach of express and implied warranties. Zepik’s complaint based subject matter jurisdiction solely on the federal question raised by the CPSA claim.

The district court dismissed the suit against the supplier and granted summary judgment on all counts in favor of the component manufacturers; Zepik appealed. We affirm the district court's rejection of the CPSA claim and remand the state claims for the district court to determine whether federal jurisdiction of the pendent claims exists under United Mine Workers v. Gibbs, 383 U.S. 715, 86 S.Ct. 1130, 16 L.Ed.2d 218 (1966).

I.

We summarize the relevant facts with all disputed issues resolved in Zepik’s favor. On June 20, 1983, Ronald Zepik dove into a backyard swimming pool at the home of his friends, the Davises, and struck his head on the bottom. The accident left him a quadriplegic. In May 1985, Zepik brought suit against five companies that had manufac *938 tured or sold components incorporated in the Davises’ pool. Claims against Ceeco Pool & Supply, Ipc. (later known as Tidewater Midwest, Inc.) were dismissed with prejudice and that company plays no part in this appeal. Another company, Loren’s Pool and Supply, Inc. (“Loren’s”), sold materials used in constructing the pool, excavated the hole and provided technical assistance. The remaining three were identified by Zepik as component manufacturers: Frost Company (“Frost”) manufactured the ladder; Pleasure Industries, Inc. (“Pleasure”) manufactured the pipes and published a construction manual consulted during construction; Polynesian, Inc. (“Polynesian”) made the wall panels and coping tile. The complaint alleged that defendants were liable, under various state law theories, for failing to warn of the danger of diving into shallow water, for failing to ensure that a safe way of entering the water would be available and for providing misleading assurances, express and implied, that diving into shallow water was safe. Count VII of the complaint, the basis for subject matter jurisdiction in the district court, invoked section 23(a) of the CPSA, 15 U.S.C. § 2072(a) (1982), which provides a private right of action for “any person” injured “by reason of any knowing (including willful) violation of a consumer product safety rule, or any other rule or order issued by the Commission.” 1 Zepik claimed that the defendants had knowingly violated rules that require manufacturers, distributors and retailers to report product defects capable of creating “substantial product hazards.” See 16 C.F.R.Part 1115 (1988).

The district court ruled in favor of the defendant-appellees in two separate decisions. On April 28, 1986, the district court granted summary judgment to Pleasure in Zepik v. Ceeco Pool & Supply, Inc., 637 F.Supp. 444 (N.D.Ind.1986) (“Zepik I”). Although the district court rejected Pleasure’s contention that the CPSA’s private right of action does not extend to reporting violations, it ruled for Pleasure on this count on the ground that the reporting requirements do not require a manufacturer of pipes or a publisher of construction manuals to report defects in completed pools. Id. at 451. This disposition of the sole federal claim should have prompted the district court to consider whether dismissal of the state claims was required under the general principle that “if the federal claims are dismissed before trial, even though not insubstantial in a jurisdictional sense, the state claims should be dismissed as well.” Gibbs, 383 U.S. at 726, 86 S.Ct. at 1139. Instead, the district court went on to consider the merits of the state law claims and to grant summary judgment to Pleasure across the board.

On November 12, 1987, the district court issued a memorandum and order disposing of Zepik’s claims against the remaining three defendants. Zepik v. Ceeco Pool & Supply, Inc., 118 F.R.D. 455 (N.D.Ind.1987) (“Zepik II”). The court granted a motion by Loren’s to dismiss the CPSA count, having been persuaded by Drake v. Honeywell, Inc., 797 F.2d 603 (8th Cir.1986), a decision handed down after Zepik I had been decided, that section 23(a) of the CPSA did not afford a private right of action for reporting violations. 118 F.R.D. at 458-59. The court further found that “no independent basis existed for this court’s continued jurisdiction over the remaining pendent state claims” against Loren’s and, citing two of this circuit’s decisions under Gibbs, dismissed those claims as well. Id. at 459. This analysis, however, was not applied to Frost and Polynesian. These defendants, whose situations closely resembled Pleasure’s, presumably saw a sure bet in moving for summary judgment on the strength of Zepik I and declined to raise arguments for dismissal *939 based on Drake and Gibbs. The district court, “reluctant to dispose of the claims against those defendants on the basis of an argument they ha[d] not addressed,” granted summary judgment for Frost and Polynesian on the CPSA and state law counts for reasons almost identical to those recited in Zepik I. See Zepik II, 118 F.R.D. at 459-65. As in the earlier order, the district court did not consider whether subject matter jurisdiction over the state law counts against Frost and Polynesian should survive the dismissal of the federal claim.

II.

A.

Zepik maintains that his private right of action against the defendants for their violations of reporting regulations issued under the CPSA derives from the plain meaning of the statute. Section 23(a) authorizes suits for damages, costs and legal fees in federal court by anyone injured “by reason of any knowing (including willful) violation of a consumer product safety rule, or any other rule or order issued by the Commission.” Section 15(b) of the CPSA, 15 U.S. C. § 2064(b) (1982), requires manufacturers, distributors and retailers of consumer products to inform the Commission immediately when they obtain any information suggesting that a product they make or distribute “contains a defect which could create a substantial product hazard.” Part 1115 of the Commission’s regulations, 16 C.F.R.Part 1115

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Bluebook (online)
856 F.2d 936, 1988 U.S. App. LEXIS 12800, 1988 WL 95583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ronald-zepik-v-tidewater-midwest-inc-ca7-1988.