Loomis v. Amazon.com LLCAnnotate this Case
Plaintiff filed suit against Amazon for injuries she suffered from an allegedly defective hoverboard she purchased from a third party seller named TurnUpUp on Amazon's website. The trial court granted summary judgment in favor of Amazon.
The Fourth District recently addressed this issue as a matter of first impression in Bolger v. Amazon.com, LLC (2020) 53 Cal.App.5th 431 (Bolger), review denied November 18, 2020, holding that Amazon is an integral part of the overall producing and marketing enterprise that should bear the cost of injuries resulting from defective products.
The Court of Appeal reversed the trial court's judgment and concluded that Bolger properly applied a well-established strict liability law to the facts of its case and was correctly decided. Based on the court's review of Amazon's third-party business model under the Business Solutions Agreement (BSA), the court is persuaded that Amazon's own business practices make it a direct link in the vertical chain of distribution under California's strict liability doctrine. Although the court concluded that Amazon is a link in the vertical chain of distribution, the court nevertheless recognizes that e-commerce may not neatly fit into a traditional sales structure. Viewing the evidence in the light most favorable to plaintiff, the court concluded that there exists a triable issue of material fact as to liability under the stream of commerce approach and thus the trial court erroneously granted summary adjudication on the strict liability claim. The court rejected Amazon's contention that it was merely a service provider and thus not strictly liable for plaintiff's injuries. Furthermore, the court was not persuaded by Amazon's reliance on those decisions that restrict strict liability to sellers or manufacturers by applying out-of-state law. The court also concluded that policy considerations underlying the doctrine are furthered by imposing strict products liability in this case. Finally, summary adjudication was improperly granted as to the negligent products liability claim where Amazon provides no legal support for its argument that negligent products liability may only be imposed on manufacturers and sellers.