20 F.4th 345
7th Cir.2021Background
- Dollar General owned and maintained rider pallet jacks (“stow jacks”) at its Marion, Indiana distribution center and permitted Capstone and CHEP employees to use them on a first-come, first-served basis; Dollar General handled maintenance and red-tagging.
- Capstone employed Seekins, trained him on stow-jack operation, and required a 12-point pre-use inspection; CHEP was a separate contractor with no direct contractual relationship with Capstone.
- On May 16, 2017 Seekins claimed stow jack SJ4, experienced a prior ‘‘jump’’ but did not report it, and later SJ4 failed to slow; Seekins jumped off, his left foot was crushed and later amputated.
- Seekins sued CHEP for negligence in Indiana state court; CHEP removed to federal court; both parties moved for summary judgment; district court granted judgment for CHEP limited to the duty element.
- Seekins argued on appeal that CHEP owed a duty as a supplier under Restatement (Second) of Torts §388 (per Dutchmen); CHEP argued it was not a supplier because Dollar General owned, controlled, and maintained SJ4.
- The Seventh Circuit affirmed: CHEP was not a "supplier" under §388, owed no duty to Seekins under Indiana law, and certification to the Indiana Supreme Court was denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CHEP owed a duty to Seekins as a supplier of a dangerous chattel under Restatement §388 | Seekins: CHEP should be treated as a supplier under Dutchmen/§388 and thus owed a duty to warn/inspect because CHEP employees used the shared stow jack and failed to remove it from service | CHEP: It was not a supplier; Dollar General owned, controlled, and maintained SJ4; no sale, lease, loan, bailment, or repair relationship with CHEP | Court: CHEP was not a §388 supplier, therefore owed no duty under Indiana negligence law; summary judgment for CHEP affirmed; certification denied |
Key Cases Cited
- Dutchmen Mfg., Inc. v. Reynolds, 849 N.E.2d 516 (Ind. 2006) (applied Restatement §388 to supplier liability)
- McGlothlin v. M & U Trucking, Inc., 688 N.E.2d 1243 (Ind. 1997) (Indiana adopted Restatement §§388 and 392 for dangerous-chattel supplier duties)
- Pfenning v. Lineman, 947 N.E.2d 392 (Ind. 2011) (holding that absence of duty defeats negligence recovery)
- Doermer v. Callen, 847 F.3d 522 (7th Cir. 2017) (in diversity cases, federal courts predict how Indiana Supreme Court would decide state-law questions)
- State Farm Mut. Auto. Ins. Co. v. Pate, 275 F.3d 666 (7th Cir. 2001) (standards for certifying questions to a state supreme court)
