HDI-GERLING INDUSTRIE VERSICHERUNG AG v. Pacific Distribution Services LLC
3:10-cv-05105
W.D. Wash.Mar 8, 2011Background
- Plaintiff insureds Rothfos and IAC brought subrogation claim for coffee damage during storage by PDS.
- PDS stored 9,316 bags of green coffee in Sumner, WA in 2009; no storage instructions provided by insureds.
- Warehouse lacked climate control beyond intermittent heaters; goods stored on pallets in multi-tier stacks.
- Parties disagreed whether beans were in good condition on arrival; no receipt exception raised by PDS.
- Joint inspection revealed discoloration patterns consistent with air exposure; samples showed storage duration correlated with discoloration.
- HDI-Gerling paid claims totaling $705,083.85 and became subrogee to Rothfos and IAC; this action follows subrogation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether PDS breached its duty of care as a warehouseman | Rothfos/IAC contend PDS failed to safeguard cargo | PDS argues no evidence of breach; condition on arrival not shown | Denial of summary judgment; material facts remain |
| Whether the damage was caused by warehouse conditions or aging/oxidation | Damage not consistent with aging; environmental factors caused discoloration | Discoloration due to aging/oxidation; no link to breach | Genuine disputes about causation; issue for trial |
| Whether Plaintiff's expert opinions are admissible and necessary at summary judgment | Expert testimony needed to establish breach and causation | Expert should be struck for qualifications/foundation; not necessary | Court denied motion to strike; expert admissible; summary judgment warranted to be denied due to remaining disputes |
Key Cases Cited
- Van Nostern v. Richey & Gilbert Co. et al., 2 Wn.2d 663 ((1940)) (negligence not presumed from mere damage to perishable goods)
- Celotex Corp. v. Catrett, 477 U.S. 317 ((1986)) (summary judgment standard; movant may show absence of evidence on essential element)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 ((1986)) (no genuine issue where record shows no probative evidence for nonmoving party)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 ((1986)) (genuine disputes require trial if evidence could lead to different outcomes)
- T.W. Elec. Service Inc. v. Pacific Electrical Contractors Association, 809 F.2d 626 ((9th Cir. 1987)) (summary judgment standard in Ninth Circuit)