City of Pomona v. SQM North America Corp., No. 15-56062 (9th Cir. 2017)
Annotate this CaseThe City of Pomona appealed a jury judgment that SQM was not liable for causing perchlorate contamination in Pomona's water system. The Ninth Circuit held that the district court abused its discretion by limiting the testimony of one of Pomona's experts and failing to make sufficient findings before admitting the testimony of one of SQM's experts. In this case, the record demonstrated that the science of stable isotope analysis evolved significantly during this case's first journey through the appellate system. The panel explained that, by constraining Dr. Sturchio to his 2011 report, the district court abused its discretion. The panel further held that the district court's failure to make any findings regarding the reliability of Dr. Laton's testimony, despite Pomona's Daubert motion, was an abuse of discretion. Therefore, these errors, in combination, were prejudicial. Accordingly, the panel reversed the district court's judgment and remanded for a new trial.
Court Description: Expert Testimony. The panel vacated the district court’s judgment, which found that SQM North America Corporation was not liable for causing perchlorate contamination in the City of Pomona’s water system, and held that the district court abused its discretion by limiting the testimony of one of the City’s experts and failing to make sufficient findings before admitting the testimony of one of SQM’s experts. Dr. Neil Sturchio developed a methodology for collecting and analyzing perchlorate isotopes from groundwater, and he concluded that most of the perchlorate in the City’s water had come from the Atacama Desert in Chile. The City filed this products-liability action, alleging that SQM’s importation of perchlorate-containing fertilizer products from the Atacama Desert caused the contamination in the City’s water supply. First, the panel addressed the district court’s denial of the City’s motion to update Dr. Sturchio’s report, which resulted in the exclusion of any testimony regarding post-2011 developments in Dr. Sturchio’s research. The panel held that in denying the City’s motion, the district court identified the correct legal standard. The panel held, however, that the district court applied the legal standard in an “illogical” manner, and thus committed an abuse of discretion. The panel further held that the district court’s exclusion of Dr. Sturchio’s testimony was prejudicial. CITY OF POMONA V. SQM NORTH AMERICA 3 Second, the panel considered the district court’s denial of the City’s motion to exclude the testimony of SQM’s alternative source expert, Dr. Richard Laton, who opined that the perchlorate at issue might have flowed from hundreds of potential alternative sources other than SQM’s fertilizer. The panel held that the manner in which the district court denied the City’s Daubert motion as to Dr. Laton constituted an abuse of discretion. Specifically, the panel held that the district court’s failure to make any findings regarding the efficacy of Dr. Laton’s expert opinions constituted an abdication of the district court’s gatekeeping role, and was necessarily an abuse of discretion. The panel also held that based on the circumstances presented by the case, the City did enough to preserve its objection. Finally, the panel held that the erroneous inclusion of Dr. Laton’s testimony, combined with the erroneous partial exclusion of Dr. Sturchio’s testimony, was prejudicial. On remand, the panel directed the district court to allow Dr. Sturchio to update his expert report, and testify to the state of stable isotope research up to the present. The panel also directed the district court to make findings regarding the scientific reliability of Dr. Laton’s proposed opinions, and hold a Daubert hearing if deemed necessary.
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