TRIAS v. QVC, INC.

District Court, E.D. Pennsylvania·Decided October 29, 2020·No. 2:20-cv-00813·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

: CIVIL ACTION EMILY TRIAS : AS PARENT AND NATURAL : GUARDIAN OF M.T., A MINOR, : Plaintiff, : v. : NO. 20-813 : QVC, INC. : Defendant. :

MEMORANDUM I. FACTUAL BACKGROUND Emily Trias, as parent and natural guardian of M.T. (“Plaintiff”), a minor, filed a complaint in the Court of Common Pleas of Philadelphia County against Defendant QVC with causes of action for strict liability, negligence, and fraudulent concealment. See generally ECF No. 1-1. Defendant removed the action to the Eastern District of Pennsylvania based on diversity jurisdiction, as Plaintiff is a South Dakota citizen and Defendant QVC is incorporated in Delaware and has a principal place of business in Pennsylvania. Id. at ¶¶ 1, 5. In the Complaint, Plaintiff alleges that QVC sold and distributed a defective trivet (the “product”), which contained small, high-powered magnets. ECF No. 1- 1. Plaintiff’s grandmother purchased the trivets, which were part of a cookware set, from QVC as a gift for Plaintiff’s family. Id. at ¶ 28. When Plaintiff was two and a half years old, Plaintiff ingested the magnets that were concealed within the trivets and suffered serious injuries as a result. Id. at ¶ 30. Plaintiff alleges that

Plaintiff was injured as a direct and proximate result of the defective magnetic trivets and of Defendant QVC’s failure to warn Plaintiff or his family that the powerful magnets inside the trivet could be easily accessed or removed by

children. Id. at ¶¶ 23, 25. Plaintiff alleges causes of action against Defendant QVC related to QVC’s “admitted sourcing, testing, advertisement, marketing, sale and distribution of the subject product.” ECF No. 47-2 at 2. Before the Court are cross-motions for choice of law. ECF Nos. 47, 48. Plaintiff contends that

Pennsylvania law should apply. ECF No. 47. Defendant QVC contends that South Dakota law should apply. ECF No. 48.

II. DISCUSSION 1. Pennsylvania Choice of Law Rules “Because this is a diversity case, we apply the choice-of law-rules of the

forum state, Pennsylvania.” Hammersmith v. TIG Ins. Co., 480 F.3d 220, 226 (3d Cir. 2007). Pennsylvania choice of law analysis consists of two parts. Id. at 230. “The first part of the choice of law inquiry is best understood as determining if

there is an actual or real conflict between the potentially applicable laws.” Id. “If there are relevant differences between the laws, then the court should examine the governmental policies underlying each law, and classify the conflict as a ‘true,’ ‘false,’ or an ‘unprovided-for’ situation.” Id.

“A false conflict exists if only one jurisdiction’s governmental interests would be impaired by the application of the other jurisdiction’s law.” Lacey v.

Cessna Aircraft Co., 932 F.2d 170, 187 (3d Cir. 1991). “In such a situation, the court must apply the law of the state whose interests would be harmed if its law were not applied.” Id.

“By contrast, there is a true conflict when the governmental interests of both jurisdictions would be impaired if their law were not applied.” Id. at 187 n.15. See also Hammersmith, 480 F.3d at 230. “If a true conflict exists, the court must

determine which state has the greater interest in the application of its law.” Id. See also Hammersmith, 480 F.3d at 231. “Finally, there are unprovided-for cases in which neither jurisdiction’s

interests would be impaired if its laws are not applied.” Garcia v. Plaza Oldsmobile Ltd., 421 F.3d 216, 220 (3d Cir. 2005). “The principle of lex loci delicti, the law of the place of the wrong, supplies the substantive law to be applied

in unprovided-for cases.” Id. 2. Relevant States’ Laws The parties agree that there is a real conflict between the applicable law in

South Dakota and Pennsylvania. ECF No. 47-2 at 8 (“[A] conflict exists requiring application of Pennsylvania choice of law analysis.”); ECF No. 48 at 8 (“A real conflict exists between the laws of South Dakota and Pennsylvania.”) Therefore,

as there are “relevant differences between the laws, then the court should examine the governmental policies underlying each law, and classify the conflict as a ‘true,’ ‘false,’ or an ‘unprovided-for’ situation.” Hammersmith, 480 F.3d at 226.

The relevant South Dakota law (the “Innocent Seller Statute”) states: No cause of action based on the doctrine of strict liability in tort may be asserted or maintained against any distributor, wholesaler, dealer, or retail seller of a product which is alleged to contain or possess a latent defective condition unreasonably dangerous to the buyer, user, or consumer unless said distributor, wholesaler, dealer, or retail seller is also the manufacturer or assembler of said product or the maker of a component part of the final product, or unless said dealer, wholesaler, or retail seller knew, or, in the exercise of ordinary care, should have known, of the defective condition of the final product. Nothing in this section shall be construed to limit any other cause of action from being brought against any seller of a product.

SDCL § 20–9–9.

In contrast, the Pennsylvania Supreme Court has adopted the Restatement (Second) of Torts § 402A, and Pennsylvania law imposes strict liability on a seller of any product in a defective condition unreasonably dangerous to the user or consumer. Webb v. Zern, 422 Pa. 424, 427 (1966); see also Tincher v. Omega Flex, Inc., 628 Pa. 296, 381-82 (2014).

3. False Conflict Plaintiff contends, first, that the conflict between the two applicable laws is

false because applying South Dakota law “immunizing sellers of defective products would impair Pennsylvania’s substantial interest in deterring the sale of defective products,” whereas “applying Pennsylvania law would not impair South Dakota’s interests.” ECF No. 47-2 at 8. Plaintiff asserts that, “in enacting the

Innocent Seller Statute, the South Dakota legislature sought to ‘protect South Dakota middlemen who, although they do not participate in the creation of defects, must otherwise answer for injuries under section 402A.’” Id. at 9 (citing

Avon Wynia v. Richard-Ewing Equipment Company, Inc., 17 F.3d 1084, 1088 (8th Cir. 1994) (citing Robert Dugan, Reflections on South Dakota’s Trifurcated Law of Products Liability, 28 S.D.L. Rev. 259, 272 (1983))). As QVC is not a South Dakota middleman, Plaintiff contends that “South Dakota has no interest in

applying its statute to protect QVC,” and therefore “a false conflict exists.” Id. Plaintiff concludes that South Dakota has no interest in applying its Innocent

Seller Statute to this case and application of this law would not further any South Dakota governmental policy. Id. at 11. Therefore, Plaintiff contends that “[c]onsidering Pennsylvania’s strong governmental interest in applying its law in this case, and the absence of impairment of South Dakota’s interests or policy if Pennsylvania law applies, a ‘false’ conflict exists.” Id. at 12.

Defendant contends that the conflict between Pennsylvania and South Dakota law is not a false conflict because each “state has a compelling interest in

regulating the allocation of liability in cases involving the purchase and use of products within its borders.” ECF No. 51 at 7 (citing Henderson v. Merck & Co. Inc., No. 2:04-cv-5987, 2005 WL 2600220, at *4 (E.D. Pa. Oct. 11, 2005)). Furthermore, Defendant cites Knipe v.

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