Skelton v. Action Traders, Ltd.
| Docket Number | Civil Action 1:19-cv-2825-JPB |
| Decision Date | 17 March 2023 |
| Parties | HAYLEY SKELTON and TYLER SKELTON, Plaintiffs, v. ACTION TRADERS, LTD.; COSTCO WHOLESALE CORPORATION; INFINITE CYCLE WORKS, LTD. a/k/a INFINITY CYCLE WORKS LTD a/k/a INFINITY CYCLEWORKS; TIANJIN GOLDEN WHEEL X-D BICYCLE CO. LTD.; and HANGZHOU JOY KIE IND. & TRAD. CO. LTD., Defendants. |
| Court | U.S. District Court — Northern District of Georgia |
This matter comes before the Court on Motions for Summary Judgment filed by Infinite Cycle Works, Ltd. (“Infinite”) [Doc. 99]; Action Traders, Ltd. (“Action Traders”) [Doc. 100]; and Costco Wholesale Corporation (“Costco”) [Doc. 101]. This Court finds as follows:
PROCEDURAL HISTORY
This case arises from Hayley Skelton's May 20, 2018 bicycle accident and her resulting injuries. The parties dispute the cause of the accident, namely whether the subject bicycle contained a defect that caused the bicycle's front fender stay to lock up the front wheel.
Hayley Skelton and her husband, Tyler Skelton, (together “Plaintiffs”), filed this action on June 20, 2019, against Action Traders, Infinite and Costco (collectively, “Domestic Defendants”). [Doc. 1]. The operative complaint is the Second Amended Complaint, which was filed on March 10, 2020. [Doc. 43]. The Second Amended Complaint adds two parties, Tianjin Golden Wheel X-D Bicycle Co. Ltd. (“Golden Wheel”) and Hangzhou Joy Kie Ind. & Trad Co. Ltd. (“Joy Kie”); Golden Wheel and Joy Kie are the “International Defendants.”[1] The Second Amended Complaint asserts claims for strict products liability, breach of warranty, negligence and failure to warn against Domestic and International Defendants. Hayley Skelton seeks damages for medical expenses and past and future pain and suffering, and Tyler Skelton seeks damages for loss of consortium.
Domestic Defendants individually moved for summary judgment on April 18, 2022.[2] [Doc. 99] (Infinite's Motion); [Doc. 100] (Action Traders' Motion); [Doc. 101] (Costco's Motion). Domestic Defendants seek summary judgment on all claims, and they filed a consolidated statement of facts. See [Doc. 99-2]. The Court thus analyzes the motions together.
The Court derives the facts of this case from Domestic Defendants' Consolidated Statement of Undisputed Material Facts in Support of their Motions for Summary Judgment, [Doc 99-2]; Plaintiffs' Response to Domestic Defendants' Consolidated Statement of Undisputed Material Facts in Support of their Motions for Summary Judgment, [Doc. 108, pp. 1-31]; Plaintiffs' Statement of Additional Material Facts that Present a Genuine Issue for Trial, [Doc. 108, pp. 32-33]; and Domestic Defendants' Reply in Support of Consolidated Statement of Undisputed Material Facts in Support of their Motions for Summary Judgment, [Doc. 112]. The Court also conducted its own review of the record.
The Local Rules of this Court require a respondent to a summary judgment motion to include with its responsive brief “[a] response to the movant's statement of undisputed facts.” N.D.Ga. Civ. R. 56.1(B)(2)(a). The Local Rules make clear that the Court will deem each of the movant's facts admitted unless the respondent refutes or objects to the fact or shows that the fact is either immaterial or unsupported by the record.[3] N.D.Ga. Civ. R. 56.1(B)(2)(a)(2). Further, in accordance with the Local Rules, this Court will not consider unsupported facts. The Court will, however, use its discretion to consider all facts the Court deems material after reviewing the record. For the purpose of adjudicating the instant Motions, the facts of this case are as follows.
On May 19, 2018, Plaintiffs purchased a 2018 Boss. Three Ladies Bicycle from Costco in Atlanta, Georgia. [Doc. 112, p. 2]. The bicycle was in a sealed box when it was shipped to Costco from China and remained in a sealed box until purchased by Plaintiffs. Id. The 2018 Boss. Three Ladies Bicycle model passed independent, third-party testing pursuant to Consumer Product Safety Commission (“CPSC”) standards prior to production and shipment to the United States. Id. at 3.
The bicycle was not fully assembled when it was shipped. Id. at 5. Specifically, the front fender and front fender stay were not attached to the rest of the bicycle; they were, however, connected to one another. Id. That is, the front fender stay was already connected to the front fender with attachment hardware (e.g., a bolt or a screw) when the bicycle was shipped and when it was delivered. Id. at 7. As a result, no additional assembly was necessary to connect the front fender and front fender stay to one another.
Plaintiffs had to remove the bicycle from the box and partially assemble it before use. Id. at 5. Tyler Skelton assembled the bicycle on May 20, 2018. Id. at 6. As part of the assembly, Tyler Skelton had to attach the front fender to the bicycle's frame. Id. at 7. He also had to attach the front fender stay to each side of the bicycle's front fork at its front tire hub. Id. The attachment hardware connecting the front fender stay to the front fender was present when Plaintiffs removed the bicycle from the packaging, as well as when Plaintiffs began their bicycle ride on May 20, 2018. Id. at 7. Tyler Skelton testified that he did not recall checking this attachment hardware, but he explained that it would have been “fairly obvious” if the bolt had been loose. Id. at 9. Hayley Skelton did not tighten or check any components on the bicycle prior to riding it on May 20, 2018. Id.
The bicycle's owner's manual included final pre-ride check instructions, which provided, in relevant part, the following: Id. at 10. The bicycle's quick instruction sheets conveyed the same message. Id. at 11.
Domestic Defendants and International Defendants have different roles with respect to the production, sale and distribution of the 2018 Boss. Three Ladies Bicycle. Golden Wheel is the manufacturer of the 2018 Boss. Three Ladies Bicycle and owns the manufacturing facility in which the subject bicycle was produced. Id. at 12. At all times relevant to this action, Joy Kie was Golden Wheel's parent company. Id. International Defendants employ engineering staff who created and provided the mechanical and engineering drawings for the 2018 Boss. Three Ladies Bicycle model. Id. at 13.
Action Traders was the supplier/vendor of 2018 Boss.Three Ladies Bicycles for Costco. Id. at 14. Following production, Costco purchases the bicycles from Action Traders, and the bicycles are then shipped from China to Costco's distribution facilities in the United States. Id. at 16. Costco did not communicate, have any business relationship or share any information with International Defendants. Id.
Infinite is the owner of the intellectual property used for the branding of the 2018 Boss. Three Ladies Bicycle model. Id. Infinite does not have employees or payroll and does not generate any revenue. Id. at 17. Action Traders is the international licensee of the Infinite name and intellectual property. Id. At all times relevant to this action, Infinite had a branding agreement with Action Traders allowing Action Traders to use the Infinite name and intellectual property on bicycles, including the subject bicycle. Id.
It appears that the bicycle's owner's manual contained an express warranty, [Doc. 108-7], that also appeared online, [Doc. 108-8]. The parties dispute Domestic Defendants' responsibilities for this express warranty. Plaintiffs assert that Infinite issued the express warranty. [Doc. 112, p. 57]; see also [Doc. 108-7] (“[Infinite] warrants its bicycles to the original purchaser to be free from defects in material and in workmanship . . . .”). Domestic Defendants counter that Infinite simply owns the intellectual property for the bicycle's branding and that because it has no employees, payroll or revenue, it is not responsible for the warranty. [Doc. 112, p. 57].
Although Plaintiffs contend that Infinite issued the express warranty, they assert that Action Traders is actually responsible for fulfilling the warranty's terms. Id. at 58. To support this assertion, Plaintiffs rely on the testimony of Shaun Morris, the representative of Infinite and Action Traders, who testified that Action Traders handles warranty claims. [Doc. 108-6, p. 87]. Domestic Defendants deny that Action Traders was responsible for the warranty. [Doc. 112, p. 58]. Furthermore, according to Domestic Defendants, the warranty is limited to the “original purchaser,” which they contend is Costco. Id. at 59.
Hayley Skelton rode the subject bicycle for the first time on the Proctor Creek Greenway Trail in Atlanta, Georgia, on May 20, 2018. Id. at 18. The accident occurred as Hayley Skelton rode from the northern end of the greenway south to the Bankhead Marta Station, turned around and headed back toward the northern end of the trail. Id. at 19. Plaintiffs testified that after Hayley Skelton crested the top of a hill and began to ride downward, she was ejected over the top of the bicycle's handlebars. Id. Plaintiffs are the only individuals who witnessed the accident. Id. at 20. At the time of the accident, they could not see the front fender or fender stay. Id.
Tyler Skelton testified that, after the accident but while he was still on the greenway, he briefly looked at the bicycle and observed that the front fender stay had detached from the front fender and impacted the bicycle's front tire. Id. at 21. Plaintiffs testified they do not know what caused the accident,...
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