State Farm Fire & Casualty Co. v. Electrolux Home Products, Inc.

980 F. Supp. 2d 1031, 91 Fed. R. Serv. 891, 2013 WL 3013531, 2013 U.S. Dist. LEXIS 84633
CourtDistrict Court, N.D. Indiana
DecidedJune 17, 2013
DocketCause No. 3:08-CV-436
StatusPublished
Cited by10 cases

This text of 980 F. Supp. 2d 1031 (State Farm Fire & Casualty Co. v. Electrolux Home Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Farm Fire & Casualty Co. v. Electrolux Home Products, Inc., 980 F. Supp. 2d 1031, 91 Fed. R. Serv. 891, 2013 WL 3013531, 2013 U.S. Dist. LEXIS 84633 (N.D. Ind. 2013).

Opinion

OPINION AND ORDER

WILLIAM C. LEE, District Judge.

Defendant Electrolux Home Products, Inc. manufactured a clothes dryer that caught on fire causing considerable damage to the home of Kelly Slabach, subrogee in this action, and her husband. State Farm Fire & Casualty insured the Slabach’s home, paid their insurance claim and then sued Electrolux to recover the amount paid on the Slabach’s behalf. State Farm asserts claims of strict product liability, negligence, and breach of warranty, all of which are dependent on its theory that the design and warnings for the dryer were defective thereby creating an unreasonably dangerous product.1

Electrolux designated its expert Dr. Christine Wood (“Wood”) to counter State Farm’s allegations. State Farm then moved to preclude Wood’s testimony [DE 92] under Fed.R.Evid. 702 and the court’s gatekeeping function identified in Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993), and its progeny. Subsequently, the undersigned referred the motion to Magistrate Judge Roger B. Cosbey pursuant to 28 U.S.C. § 636(b)(1)(B), Federal Rule of Civil Procedure 72(b), and N.D.Ind. Local Rule 72-l(b), for a Report and Recommendation. [DE 117]. On November 5, 2012, the Magistrate Judge entered his Report and Recommendation (“R & R”) [DE 121] recommending that State Farm’s motion to exclude Wood’s testimony be denied in part and granted in part. Thereafter, both Electrolux and State Farm filed their Objections to the Magistrate Judge’s R & [1036]*1036R [DE 123, DE 124] seeking to have this Court reject certain portions the R & R and, in the case of Electrolux, consider further evidence before ruling on the objections. For the reasons set forth herein, the Court will OVERRULE Electrolux’s objections to the R & R; OVERRULE State Farm’s objections to the R & R; ADOPT the R & R in its entirety [DE 121]; and DENY, in part, and GRANT, in part, State Farm’s Motion to Exclude the Testimony of Dr. Christine Wood. [DE 92],

STANDARD OF REVIEW

From the outset, the parties disagree on the appropriate standard of review for this Court’s review of the Magistrate Judge’s R & R. State Farm cites cases which indicate that motions relating to evidentiary matters are non-dispositive and, under Fed. R.Civ.P. 72(a) and 28 U.S.C. 636(b)(1)(A) the standard of review is “clearly erroneous.” See RMED Int% Inc. v. Sloan’s Supermarkets, Inc., 2000 WL 420548, *2, n. 1 (S.D.N.Y. April 18, 2000) (“A decision to admit or exclude expert testimony is considered ‘nondispositive’ of the litigation.”); Cusumano v. Mapco Gas Products, Inc., 1994 WL 86653, *1 (N.D.Ill. March 10, 1994). Electrolux, however, argues that as a general rule, when objections are received to a Magistrate Judge’s Report and Recommendation pursuant to 28 U.S.C. § 636(b)(1)(B),2 the assigned District Judge “shall make a de novo determination of those portions of the report or specified proposed findings or reeommendations to which objection is made.” 28 U.S.C. § 636(b)(1); see also Fed. R.Civ.P. 72(b). Under this more stringent standard, the District Judge “may accept, reject, or modify, in whole or part, the findings or recommendations made by the magistrate judge. The judge may also receive further evidence or recommit the matter to the magistrate judge with instructions.” Id. However, the court need not conduct a hearing on the entire matter, but must give “fresh consideration to those issues to which specific objections have been made.” 12 Charles A. Wright, Arthur R. Miller & Richard L. Marcus, Federal Practice and Procedure, § 3076.8, at p. 56 (1992 Pocket Part); See also Goffman v. Gross, 59 F.3d 668, 671 (7th Cir.1995).

In this case, while the Court agrees with State Farm that the “clearly erroneous” standard is likely the more appropriate one in light of the non-dispositive nature of the motion in limine, the Court shall conduct a de novo review of both the Magistrate Judge’s R & R. As is evidenced by this Court’s ultimate conclusion, under either standard the Magistrate Judge’s R & R survives scrutiny.

DISCUSSION

On August 16, 2006, the Slabach’s dryer caught fire, causing damage to their home and personal property for which State Farm paid $234,825.21.3 The Slabach’s dryer was a gas fired dryer manufactured by Electrolux. State Farm, as indicated [1037]*1037above, brought this subrogation action against Electrolux alleging that the dryer was defectively and dangerously designed, manufactured, assembled, and sold and failed to have adequate warnings regarding the potential for the dryer to malfunction and ignite a fire. (Complaint, ¶ 8).

Electrolux designated Drs. Christine Wood and Duane L. Steffey4 of Exponent, Inc., to serve as its experts and counter State Farm’s theory of liability. The two Drs. co-authored a written report entitled, “Evaluation of Fire Risks Associated with Clothes Dryers: Electrolux Dryers and Ml Dryers.”5 In that report, the Drs. opine that: (1) “[t]he risk of dryer-involved fire reported for Electrolux clothes dryers is statistically significantly lower than the risk of fires for all models of clothes dryers from any manufacturer;” and (2) “[r]elative to the fire rates for all clothes dryers, Electrolux clothes dryers are not an unreasonably dangerous product.” (Dr. Wood Report, p. 8).6 Dr. Wood also issued a second written report, hereinafter “Dr. Wood Warnings Report,” wherein she analyzes the warnings and safety information that Electrolux provided in its owner’s guide, operating instructions, and product labels associated with its dryers. From her analysis, she concludes that Electrolux’s warnings and safety information were reasonable and adequate in content, location, and format and thus, were not defective. (Dr. Wood Warnings Report, p. 6).

The Magistrate Judge’s R & R sets forth in detail Dr. Wood’s qualifications including her extensive and impressive educational background, work history, including her employment with Exponent as a Principal Scientist and Director of the Human Factors Practice,7 and her experience in researching the impact of safety and health related information on human behavior and injury reductions. In addition, the Magistrate Judge noted that she has an extensive background in risk analysis and outlined that background in his R & R.

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980 F. Supp. 2d 1031, 91 Fed. R. Serv. 891, 2013 WL 3013531, 2013 U.S. Dist. LEXIS 84633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-fire-casualty-co-v-electrolux-home-products-inc-innd-2013.