State Farm Fire & Casualty Co. v. Frigidaire

146 F.R.D. 160, 26 Fed. R. Serv. 3d 95, 1992 U.S. Dist. LEXIS 8881, 1992 WL 437198
CourtDistrict Court, N.D. Illinois
DecidedJune 17, 1992
DocketNo. 92 C 141
StatusPublished
Cited by25 cases

This text of 146 F.R.D. 160 (State Farm Fire & Casualty Co. v. Frigidaire) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois 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. Frigidaire, 146 F.R.D. 160, 26 Fed. R. Serv. 3d 95, 1992 U.S. Dist. LEXIS 8881, 1992 WL 437198 (N.D. Ill. 1992).

Opinion

[161]*161MEMORANDUM OPINION AND ORDER

ASPEN, District Judge:

This diversity action arises out of the purported malfunction of a Frigidaire dishwasher. Plaintiff State Farm Fire and Casualty Company (“State Farm”), as subrogee of Richard Lutz, Jr. and Patricia Lutz, brings this lawsuit against Frigidaire, a division of General Motors Corporation, alleging negligence and strict liability in tort. Presently before the court is Frigidaire’s motion to dismiss State Farm’s complaint, or, in the alternative, to bar State Farm from presenting any evidence, direct or circumstantial, regarding the condition of the allegedly defective dishwasher. For the reasons set forth below, the motion to dismiss is granted.

I. Motion to Dismiss Standard

A motion to dismiss should not be granted unless it “appears beyond doubt that the plaintiff can prove no set of facts in support of his claims which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957); see also Beam v. IPCO Corp., 838 F.2d 242, 244 (7th Cir.1988); Ellsworth v. City of Racine, 774 F.2d 182, 184 (7th Cir.1985), cert. denied, 475 U.S. 1047, 106 S.Ct. 1265, 89 L.E.2d 574 (1986). We take the “well-pleaded allegations of the complaint as true and view them, as well as reasonable inferences therefrom, in the light most favorable to the plaintiff.” Balabanos v. North Am. Inv. Group, Ltd., 708 F.Supp. 1488, 1491 n. 1 (N.D.Ill.1988) (citing Ellsworth).

II. Background

On December 3, 1989, Ronald and Patricia Lutz’ home was damaged by fire. The residence was insured against certain risks and perils, including loss due to fire, pursuant to State Farm policy number 13-18-0076-8. On December 4, 1989, State Farm adjuster Yal Thompson began an investigation into the cause of the fire, photographing and performing a IV2 hour inspection of the scene. Suspecting that the fire started in the dishwasher, Thompson specifically instructed Mrs. Lutz not to dispose of the appliance.

Thompson, on December 11, 1989, contacted Carl Frank of Keller-Webb Associates, a professional engineer, to examine the Lutz home. During the course of the conversation, Thompson informed Frank that he believed the dishwasher was the origin of the fire. Based on this information, Frank recognized the possibility of litigation against the dishwasher manufacturer, Frigidaire. Frank performed two separate IV2 hour inspections of the Lutz abode, each without notifying Frigidaire. During the first inspection, on December 11, 1989, Frank photographed and performed a complete examination of the scene, identifying the dishwasher as the most likely cause of the fire. Frank returned for a second inspection of the Lutz home on December 15, 1989, at which time he focused on the lower right front corner of the dishwasher. From this location, Frank cut out portions of the wiring harness, including the switch and switch mounting bracket, which he has retained. Immediately following his second examination, Frank telephoned Thompson, advising him that the fire originated in the lower right hand corner of the dishwasher as a result of a short in an unidentifiable harness wire. Frank’s conclusion later was embodied in a report submitted to State Farm, dated January 12, 1990.

According to Mrs. Lutz, following his inspections, Frank informed Mrs. Lutz that she could dispose of the dishwasher, there being “no need to save it anymore.” Within a week, Mrs. Lutz did just that, rendering the dishwasher unavailable for inspection by Frigidaire. This action, the gravamen of which rests on the allegedly defective design and manufacture of the dishwasher, was filed on December 2, 1991, approximately two years after the fire.

III. Discussion

As a threshold matter, this court is confronted with the choice of applying either Illinois or federal law to Frigidaire’s current motion, a choice governed by Erie R.R. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), and its progeny. [162]*162It is settled law that a federal court exercising diversity jurisdiction must apply “substantive” state law. Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496, 61 S.Ct. 1020, 1021, 85 L.Ed. 1477 (1941); Monetti, S.P.A. v. Anchor Hocking Corp., 931 F.2d 1178, 1181-82 (7th Cir.1991); Northbrook Excess & Surplus Ins. Co. v. Procter & Gamble Co., 924 F.2d 633, 637 (7th Cir.1991). As a necessary corollary, the Erie doctrine mandates that federal courts sitting in diversity apply federal “procedural” rules to the proceedings. Hanna v. Plumer, 380 U.S. 460, 465, 85 S.Ct. 1136, 1141, 14 L.Ed.2d 8 (1965); Simmons, Inc. v. Pinkerton’s, Inc., 762 F.2d 591, 595 (7th Cir.1985); W.E. O’Neil Const. Co. v. National Union Fire Ins. Co. of Pittsburgh, 721 F.Supp. 984, 989 (N.D.Ill. 1989). Drawing a principled distinction between “substance” and “procedure,” however, is an incorrigible task, as “[t]he line between [the two] shifts as the legal context changes.” Hanna, 380 U.S. at 471, 85 S.Ct. at 1144; Guaranty Trust Co. of New York v. York, 326 U.S. 99, 108, 65 S.Ct. 1464, 1469, 89 L.Ed. 2079 (1945) (“Each implies different variables depending upon the particular problem for which it is used.”). Nevertheless, in that “the outcome of [diversity] litigation in the federal court should be substantially the same, so far as legal rules determine the outcome of a litigation, as it would be if tried in a [s]tate court,” Guaranty Trust, 326 U.S. at 109, 65 S.Ct. at 1470, we can only conclude that the issue of State Farm’s pre-suit duty to preserve material evidence is substantive and, as such, Illinois law governs.1

As often repeated by the Illinois courts, “[t]he preservation of an allegedly defective product is of utmost importance in both proving and defending against a strict liability action.” Graves v. Daley, 172 Ill.App.3d 35, 38, 122 Ill.Dec. 420, 422, 526 N.E.2d 679, 681 (3d Dist.1988) (citing Ralston v. Casanova, 129 Ill.App.3d 1050, 85 Ill.Dec. 76, 473 N.E.2d 444 (1st Dist.1984)). Accordingly, a plaintiff is obligated, under the penalty of sanctions, to preserve the allegedly defective product which it knew, or reasonably should have known, would be material in the contemplated product liability action. American Family Ins. Co. v. Village Pontiac GMC, Inc.,

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Bluebook (online)
146 F.R.D. 160, 26 Fed. R. Serv. 3d 95, 1992 U.S. Dist. LEXIS 8881, 1992 WL 437198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-fire-casualty-co-v-frigidaire-ilnd-1992.