REESE et al v. MAGARINO FORD-MERCURY, INC.
Filing
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MEMORANDUM AND/OR OPINION. SIGNED BY HONORABLE THOMAS N. ONEILL, JR ON 10/3/11. 10/4/11 ENTERED AND COPIES EMAILED.(rf, )
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA
TIMOTHY K. REESE & MARY K. REESE
:
CIVIL ACTION
:
NO. 09-2948
v.
:
:
FORD MOTOR COMPANY &
:
FAULKNER-CIOCCA FORD MERCURY
:
______________________________________________________________________________
TIMOTHY K. REESE & MARY K. REESE
v.
MAGARINO FORD-MERCURY, INC.
:
:
:
:
:
O’NEILL, J.
CIVIL ACTION
NO. 10-1181
October 3, 2011
MEMORANDUM
I have before me motions for summary judgment by defendants Ford Motor Company
(“Ford”), Faulkner-Ciocca Ford Mercury (“Faulkner”) and Magarino Ford-Mercury, Inc.
(“Magarino”). Ford also requests attorney fees. Plaintiffs Timothy and Mary Reese oppose each
motion. For the reasons that follow, I will grant defendants’ motions for summary judgment but
deny Ford’s request for fees.
BACKGROUND
In 2006, the Reeses decided to purchase a new, fully-loaded Mercury Monterey. Doc. 434 at p. 7.1 They placed an order with Faulkner, whose inventory at the time did not include a car
that met the Reeses’ specifications. Doc. 43-7 at p. 3. Magarino’s inventory, however, did.
Doc. 43-6 at p. 14. Accordingly, Faulkner and Magarino arranged a swap wherein Faulkner
1
References to the record will be to the document number and pagination generated by the
electronic case filing system on the top of each page of the documents filed by the parties.
acquired a fully-loaded Monterey from Magarino in exchange for another vehicle. Id. The
Reeses then purchased the Monterey from Faulkner. Doc. 43-8 at p. 14. When the Reeses
acquired the vehicle, it had 129 miles on it. Doc. 43-7 at p. 5. The Monterey came with a new
vehicle limited warranty which stated that the warranty did not cover damages caused by the
installation of a non-Ford part. Doc. 39-12 at p. 13. Plaintiffs also purchased an extended
warranty that extended the warranty coverage to seventy-two months, which was the length of
the loan plaintiffs took to pay for the car.2 Doc. 43-8 at p. 22.
Timothy Reese is a Pep Boys store manager. Doc. 43-4 at p. 6. He lacks training in
vehicle maintenance and repair and does not service vehicles that come in to Pep Boys. Id. He
does, however, perform routine work on his own cars, including oil changes, tire rotations, and
changing batteries. Id. When the Reeses acquired the Monterey, Timothy Reese inspected the
vehicle and found that it met his specifications. Doc. 39-9 at p. 3. He testified that he would
have noticed if the car included aftermarket parts, and that he did not see any such parts in the
course of his inspection. Id.
Plaintiffs had the Monterey for approximately three years and 33,000 miles. Doc. 39-5 at
p. 5. During that time, Timothy Reese performed oil changes, filter changes, and tire rotations on
the vehicle. Doc. 43-4 at p. 7. He also brought the Monterey in to Pep Boys for two state
inspections and a fuel filter change. Id. at p. 8. Reese testified that the vehicle required no
further maintenance or repair. Id. at p. 9.
One evening in May of 2009, Timothy Reese drove the Monterey home and parked it in
2
The parties have not provided a copy of the extended warranty. I will assume that the
extended warranty does not alter the new vehicle limited warranty’s provision that disclaims
coverage for damages caused by aftermarket parts.
2
his garage. Doc. 43-4 at p. 9. As he exited the vehicle, Reese smelled a burning odor but did not
notice any smoke or flames coming out of the car. Id. at p. 10. He proceeded into his house and
started to eat dinner with his wife. Id. at p. 12. Shortly thereafter, the Reeses both smelled a
burning odor coming from the garage. Id. Timothy Reese opened the door to the garage and saw
flames emerging from the front driver’s-side corner of the Monterey. Id. The fire spread and
damaged the Reeses’ property. Id. at p. 15-16.
The Reeses subsequently sued Ford and Faulkner (Civil Action No. 09-2948), asserting
claims for breach of warranty, breach of contract, strict liability and negligence. When plaintiffs
learned through discovery that Faulkner acquired the Monterey from Magarino, the Reeses
brought a separate action against Magarino asserting claims for breach of warranty, strict liability
and negligence (Civil Action No. 10-1181). The Magarino suit was then consolidated with the
action against Ford and Faulkner.3
The Reeses have retained forensic mechanic Victor Donatelli as an expert. He opined
that the fire started in the area of aftermarket wiring connected to the Monterey’s engine cooling
fan resistor. Doc. 45-10 at p. 4. Donatelli testified at his deposition that Ford would not have
built the Monterey with the aftermarket wiring and that the vehicle would not have left Ford’s
possession with the aftermarket wiring. Doc. 39-6 at p. 4. Donatelli also observed that the
vehicle’s power steering cooler showed signs of damage suggesting the car had been in a crash.
Doc. 45-10 at p. 6.
Donatelli further testified at his deposition that earlier in his career, when he was a
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Magarino subsequently filed a third-party complaint against Pep Boys, but that action
was dismissed with prejudice pursuant to a stipulation of the parties.
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mechanic at an automobile dealership, he was occasionally asked to repair vehicles that became
damaged while in the dealership’s possession. Doc. 43-14 at p. 3. Donatelli observed that those
repairs would not be documented. Id. at p. 4. Donatelli testified that he did not, however, ever
use aftermarket parts to make such repairs. Id.
Ford’s experts, fire investigator Larry Helton and design analysis engineer James J.
Engle, also conclude that the fire originated in an area of the engine compartment that included
aftermarket wiring. Doc. 43-13 at p. 3; Doc. 39-7 at p. 3. Faulkner and Magarino have jointly
retained a mechanical engineer and certified fire and explosion investigator who opines that the
cause of the fire was undetermined. Doc. 43-15 at p. 7. In their motions for summary judgment,
however, Faulkner and Magarino take the position that aftermarket wiring caused the fire. Doc.
38-1 at p. 2; Doc. 29-1 at p. 2.
The record contains no evidence showing who installed the aftermarket wiring.
Similarly, the Monterey’s maintenance records show no sign that the vehicle was ever involved
in a collision.
STANDARD OF REVIEW
Summary judgment will be granted “against a party who fails to make a showing
sufficient to establish the existence of an element essential to that party’s case, and on which that
party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986).
The party moving for summary judgment bears the burden of demonstrating that “there is no
genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”
Fed. R. Civ. P. 56(a); see Celotex, 477 U.S. at 322-23. If the movant sustains its burden, the
nonmovant must set forth facts demonstrating the existence of a genuine dispute. See Anderson
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v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986). A dispute as to a material fact is genuine if
“the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id.
A fact is “material” if it might affect the outcome of the case under governing law. Id.
To establish “that a fact cannot be or is genuinely disputed,” a party must:
(A) cit[e] to particular parts of materials in the record, including
depositions, documents, electronically stored information,
affidavits or declarations, stipulations (including those made for
purposes of the motion only), admissions, interrogatory answers, or
other materials; or
(B) show[ ] that the materials cited do not establish the absence or
presence of a genuine dispute, or that an adverse party cannot
produce admissible evidence to support the fact.
Fed. R. Civ. P. 56(c)(1). The adverse party must raise “more than a mere scintilla of evidence in
its favor” in order to overcome a summary judgment motion and cannot survive by relying on
unsupported assertions, conclusory allegations, or mere suspicions. Williams v. Borough of W.
Chester, 891 F.2d 458, 460 (3d Cir. 1989). The “existence of disputed issues of material fact
should be ascertained by resolving all inferences, doubts and issues of credibility against” the
movant. Ely v. Hall’s Motor Transit Co., 590 F.2d 62, 66 (3d Cir. 1978) (citations and quotation
marks omitted).
DISCUSSION
I.
Motions for Summary Judgment
A.
Strict Liability
The parties agree that Pennsylvania law governs the Reeses’ strict liability claims.
Pennsylvania has adopted Restatement (Second) of Torts § 402A (1965). See Webb v. Zern, 220
A.2d 853, 854 (Pa. 1966). Section 402A provides that
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(1) [o]ne who sells any product in a defective condition
unreasonably dangerous to the user or consumer or to his property
is subject to liability for physical harm thereby caused to the
ultimate user or consumer, or to his property, if
(a) the seller is engaged in the business of selling such a
product, and
(b) it is expected to and does reach the user or consumer
without substantial change in the condition in which it is
sold.
(2) The rule stated in Subsection (1) applies although
(a) the seller has exercised all possible care in the
preparation and sale of his product, and
(b) the user or consumer has not bought the product from or
entered into any contractual relation with the seller.
Restatement (Second) of Torts § 402A (1965). A plaintiff in a strict liability case “must prove
(1) that the product was defective, (2) that the defect existed when it left the hands of the
defendant, and (3) that the defect caused the harm.” Schindler v. Sofamor, Inc., 774 A.2d 765,
771 (Pa. Super. Ct. 2001). “The seller is not liable if a safe product is made unsafe by
subsequent changes.” Davis v. Berwind Corp., 690 A.2d 186, 190 (Pa. 1997).
In the present matter, the parties agree that aftermarket wiring caused the fire, but the
record contains no evidence showing who installed these wires. Between the Monterey’s
manufacture and its demise, five entities exercised control over the vehicle: Ford, Magarino,
Faulkner, the Reeses and Pep Boys. Even if the jury were to accept plaintiffs’ assertion that
neither plaintiffs nor Pep Boys installed the aftermarket wiring, the jury would have no way of
knowing who among the three defendants, if any, is liable. In other words, there is no evidence
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that the Monterey was defective “when it left the hands of” any defendant. Schindler, 774 A.2d
at 771. Summary judgment is appropriate because plaintiffs cannot prove this element of their
strict liability claims.
The Pennsylvania Superior Court’s decision in Pennfield Corp. v. Meadow Valley Elec.,
Inc., 604 A.2d 1082 (Pa. Super. Ct. 1992) is instructive. In that case, hundreds of pigs died when
the ventilation system in their shelter malfunctioned. Id. at 1083. The pigs’ owner sued Meadow
Valley Electric, the company that performed maintenance of the shelter’s electrical system. Id.
Meadow Valley, in turn, attempted to join two additional defendants, one of whom allegedly
distributed a defective cable that caused the ventilation system to fail. Id. Meadow Valley’s
joinder complaint asserted claims of strict liability, negligence, and breach of warranty. Id. But
the complaint did not identify which of the two companies actually distributed the faulty cable.
Instead, the complaint alleged that “either” one company or the other supplied the part. Id. One
of the distributors objected in the form of a demurrer to being joined. Id. The trial court
sustained the objection and dismissed the joined company from the suit. Id. at 1084.
On appeal, Meadow Valley argued that it need not allege that a particular company
distributed the defective cable because the “alternative liability” theory relieved it of its burden of
proving which distributor caused the damages. Id. at 1085. See Restatement (Second) of Torts §
433B(3) (1965) (“Where the conduct of two or more actors is tortious, and it is proved that harm
has been caused to the plaintiff by only one of them, but there is uncertainty as to which one has
caused it, the burden is upon each such actor to prove that he has not caused the harm.”). The
Superior Court noted that in cases applying the alternative liability theory all defendants acted
negligently even if only one caused the harm. Id. at 1086-87. The Court declined to extend the
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alternative liability theory to the case before it because the joinder complaint alleged that only
one distributor supplied the defective cable. The Court explained that a contrary decision
would potentially open a Pandora’s box of wide-open liability,
where an innocent party could be found liable to an injured party
just because he cannot disprove that he caused the accident. . . .
Our system of jurisprudence rightly balks at assigning liability to a
innocent party. Our reluctance has been overcome only when
compelling circumstances demand that we deviate from the rule
that a cause of action must fail unless defendant’s conduct is
shown to have been the proximate cause of plaintiff’s injury.
Id. at 1088 (emphasis in original). The Court remanded the case to allow Meadow Valley to
amend its joinder complaint, but cautioned that “if after an opportunity to submit all the relevant
evidence, the probabilities are at best still evenly divided between the [joined defendants] as to
causation, it would be the duty of the trial court to dismiss the complaint at an appropriate
dispositional stage in the proceedings upon motion by either or both.” Id. at 1090.
In the present matter, discovery has concluded and the Reeses cannot point to any
evidence showing who among the three defendants installed the aftermarket wiring. Although
plaintiffs do not expressly rely on an alternative liability theory, they nonetheless argue that their
claims should survive summary judgment because a factfinder could decide that one of the
defendants installed the aftermarket wiring. Notably, plaintiffs’ briefs opposing defendants’
motions for summary judgment each contain an identical statement arguing that a factfinder
could draw the inference that the Monterey’s “accident damage was subject to a corrective repair
by one of the Defendants.” See Doc. 43-2 at p. 14; Doc. 44 at p. 13; Doc. 45 at p. 13 (emphasis
added). Only one defendant could have installed the aftermarket wiring and plaintiffs cannot
show that one defendant was more likely than the others to have done so. If this case went to
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trial, the factfinder could only hazard a guess as to which defendant was liable. Because
plaintiffs cannot prove an element of their strict liability claims–that the vehicle left a
defendant’s control in a defective condition–I must grant the defendants’ motions for summary
judgment on these claims.
Plaintiffs’ arguments to the contrary are unavailing. They cite to Cornell Drilling Co. v.
Ford Motor Co., 359 A.2d 822 (Pa. Super. Ct. 1976) (disapproved of on other grounds by REM
Coal Co. v. Clark Equip. Co., 563 A.2d 128 (Pa. Super. Ct. 1989)) for the proposition that
“[a]lthough it is helpful for a plaintiff to have direct evidence of the defective condition which
caused the injury or expert testimony to point to that specific defect, such evidence is not
essential in a strict liability case based on s 402A.” Id. at 825. I do not doubt the soundness of
this principle, but it has no bearing on the present case because the parties have presented “direct
evidence” of the cause of the fire: the aftermarket wiring. The issue for which there is no
evidence is the identity of the responsible party. Absent such evidence, plaintiffs’ strict liability
claims cannot survive summary judgment.
I write further to address issues particularly affecting the Reeses’ strict liability claim
against Ford. The Reeses’ own expert, Victor Donatelli, testified that the Monterey would not
have left Ford’s possession with aftermarket wiring. Doc. 39-6 at p. 4. The Reeses attempt to
overcome this testimony by arguing that the installation of aftermarket wiring was foreseeable.
Plaintiffs correctly note that “[w]here the product has reached the user or consumer with
substantial change, the question becomes whether the manufacturer could have reasonably
expected or foreseen such an alteration of its product.” Davis, 690 A.2d at 190. But the record
contains no evidence suggesting that Ford should have foreseen the installation of aftermarket
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wiring by one of its authorized dealers. Donatelli testified that when he was a mechanic at
another manufacturer’s dealership, he made undocumented repairs to vehicles, but he also
testified that he never used aftermarket parts. Doc. 45-14 at p. 4. Based on the record evidence,
Ford could not have foreseen the alterations that were made to the Reese’s vehicle.
Plaintiffs also argue that Ford is made strictly liable simply by putting the Ford name on
the Monterey. The Reeses cite to Brandimarti v. Caterpillar Tractor Co., 527 A.2d 134 (Pa.
Super. Ct. 1987), in which a forklift that Caterpillar did not manufacture injured the plaintiff. Id.
at 135. The forklift did, however, display the Caterpillar name. Id. at 139. The Court concluded
“that Caterpillar, who although not the manufacturer, authorized the defendant manufacturer to
display its name on the product, could be held strictly liable if the product bearing the Caterpillar
name proved defective and the defect caused Appellant’s injuries.” Id. at 140.
Brandimarti is distinguishable because that case did not involve a product that was
modified after it left the manufacturer’s control. Well-settled Pennsylvania law provides that a
seller is not strictly liable where damages result from an unforseeable change to its product. See
Hoffman v. Niagra Mach. & Tool Works Co., 683 F. Supp. 489, 493 (E.D. Pa. 1988) (applying
Pennsylvania law and explaining that “a manufacturer may be relieved of liability only if: (1) the
product was substantially altered after it left the manufacturer’s control; (2) the modifications
were not foreseeable to the manufacturer; and (3) the changes to the product were a superseding
cause of the user’s injury”). There being no evidence that the installation of aftermarket wiring
was foreseeable, Ford is entitled to summary judgment on the Reeses’ strict liability claim.
B.
Negligence
Plaintiffs’ inability to identify a defendant that is responsible for installing the aftermarket
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wiring also dooms their negligence claims. The Pennsylvania Supreme Court has explained that
[t]he elements necessary to plead an action in negligence are: (1)
the existence of a duty or obligation recognized by law, requiring
the actor to conform to a certain standard of conduct; (2) a failure
on the part of the defendant to conform to that duty, or a breach
thereof; (3) a causal connection between the defendant’s breach
and the resulting injury; and (4) actual loss or damage suffered by
the complainant.
Atcovitz v. Gulph Mills Tennis Club, Inc., 812 A.2d 1218, 1222 (Pa. 2002). Because plaintiffs
have no evidence as to who installed the aftermarket wiring, plaintiffs cannot establish that any
defendant breached a duty to plaintiffs or caused plaintiffs’ injuries. Accordingly, plaintiffs’
negligence claims cannot survive summary judgment. See Pennfield Corp., 604 A.2d at 1090
(noting that a complaint that included negligence claim should be dismissed if evidence failed to
show which of two potentially liable defendants caused damages).
C.
Breach of Warranty and Breach of Contract
Plaintiffs assert claims of breach of implied warranty against all defendants. But these
claims fail for the same reason that the strict liability and negligence claims fail: plaintiffs
cannot point to any evidence that any particular defendant installed the aftermarket wiring.
Accordingly, plaintiffs cannot prove that any defendant breached an implied warranty. See id.
(noting that complaint that included breach of warranty claim should be dismissed if evidence
did not show which of two potentially defendants caused damages).
Against Ford, plaintiffs also allege breach of express warranty. This claim fails because
Ford’s warranty disclaims coverage for damages resulting from the installation of aftermarket
parts. See Doc. 39-12 at p. 13. The Reeses maintain that equitable estoppel should prevent Ford
from relying on this provision of the warranty. “Equitable estoppel is a doctrine that prevents
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one from doing an act differently than the manner in which another was induced by word or deed
to expect.” Novelty Knitting Mills, Inc. v. Siskind, 457 A.2d 502, 503 (Pa. 1983). The doctrine
does not apply here. Even if I accept that Ford “induced” the Reeses into believing that they
were purchasing a Monterey consisting entirely of Ford parts, plaintiffs have no evidence that
Ford “act[ed] differently” by selling the Reeses a car that included aftermarket parts. On the
contrary, plaintiffs’ own expert, Victor Donatelli, testified that Ford would not have installed
aftermarket parts on the Reeses’ Monterey. Accordingly, I will dismiss plaintiffs’ breach of
warranty claims.
Finally, I will dismiss plaintiffs’ breach of contract claims because the Reeses cannot
show that any defendant committed a breach by installing aftermarket wires.
II.
Request for Attorney Fees
Pennsylvania law authorizes the award of counsel fees “as a sanction against another
participant for dilatory, obdurate or vexatious conduct during the pendency of a matter,” 42 Pa.
Cons. Stat. § 2503(7), and where “the conduct of another party in commencing the matter or
otherwise was arbitrary, vexatious or in bad faith.” Id. § 2503(9). Ford asks me to award fees
because plaintiffs refused to dismiss Ford after it became clear through discovery that Ford did
not manufacture or install the wiring that caused the fire.
While plaintiffs’ case is not strong enough to survive summary judgment, I do not believe
plaintiffs acted vexatiously or in bad faith in maintaining their action against Ford. Plaintiffs
presented colorable arguments that Ford could be liable despite the fact that aftermarket parts
caused the Monterey to catch fire. Accordingly, I will deny Ford’s request for attorney fees.
An appropriate Order follows.
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