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943 F. Supp. 2d 844
N.D. Ill.
2013
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Background

  • Subrogation action arising from a 2011 fire at Bank of America’s 25-story Chicago banking center caused by an electrical counterfeit currency bill detector.
  • Plaintiffs insured BOA’s building and tenants; they reimbursed losses and seek to recover amounts from Accubanker, Office Depot, and BOA.
  • Defendant Office Depot removed the case to federal court on December 14, 2012 and moved to dismiss counts for negligence and strict liability.
  • Courts apply Rule 12(b)(6) for sufficiency; allegations are viewed in the plaintiff-friendly light with facial plausibility required.
  • Court granted Office Depot’s motion to dismiss the negligence and strict liability claims against Office Depot.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Did Office Depot owe a duty in negligence claim? Plaintiffs allege duty from design, manufacture, testing, inspecting and selling the detector. Office Depot did not design/manufacture and there was no foreseeability to Plaintiffs as non-users. Duty not owed; negligence claims dismissed.
Whether seller's exception supports dismissal of strict liability claim Office Depot exercised control or knowledge of defects; defects existed at sale. Affidavit shows no significant control; satisfies seller's exception. Seller's exception applicable; dismissal of strict liability claim appropriate.

Key Cases Cited

  • Jablonski v. Ford Motor Co., 955 N.E.2d 1138 (Illinois 2011) (duty element in negligence cases)
  • Solis v. BASF Corp., 979 N.E.2d 419 (Illinois 2012) (distributor duty to warn and instruct users not purchasers)
  • LaRoe v. Cassens & Sons, Inc., 472 F. Supp. 2d 1041 (S.D. Ill. 2006) (non-manufacturer can be dismissed under seller's exception if proper certification)
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Case Details

Case Name: Lexington Insurance v. Office Depot, Inc.
Court Name: District Court, N.D. Illinois
Date Published: May 6, 2013
Citations: 943 F. Supp. 2d 844; 2013 WL 1883189; 2013 U.S. Dist. LEXIS 64169; No. 12 C 9990
Docket Number: No. 12 C 9990
Court Abbreviation: N.D. Ill.
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