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Patricia Ayala v. Gabriel Building Supply
569 F. App'x 241
5th Cir.
2014
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Background

  • Ayala sued Gabriel Building Supply and manufacturers Enerco Group, Inc. and Mr. Heater, Inc. in Louisiana state court over a deadly Mr. Heater propane heater fire.
  • Defendants removed to federal court arguing Gabriel was improperly joined; the district court dismissed Gabriel and stayed with remaining defendants.
  • District court granted summary judgment for Enerco and Mr. Heater on Ayala’s products-liability claims under the Louisiana Products Liability Act (LPLA).
  • Ayala later filed a second state-court action against Gabriel and sought to reassert Mr. Heater claims; the district court enjoined the state proceedings and awarded sanctions to Mr. Heater.
  • Ayala appeals the improper-joinder ruling, the summary-judgment grant, and the sanctions; she challenges discovery rulings as well.
  • This court affirms dismissal of Gabriel and the summary judgment for Enerco and Mr. Heater, but reverses sanctions against Ayala’s counsel.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Was Gabriel improperly joined? Ayala contends Gabriel is properly joined under Louisiana law. Defendants argue Gabriel has no viable LPLA claim as a non-manufacturer seller. Gabriel improperly joined; remand denied.
Do Ayala’s remaining claims survive under the LPLA after Gabriel’s dismissal? Ayala argues defect evidence creates a triable issue as to unreasonably dangerous heater. Defendants contend no Louisiana-proper defect evidence supports LPLA liability. Summary judgment for Enerco and Mr. Heater affirmed; no material fact issue on defect.
Was res ipsa loquitur or lay-evidence sufficient to create a fact issue on defect? Ayala relies on McPhate’s testimony and her own affidavit to show defect. Evidence is speculative and non-personalized; not enough to infer defect. Res ipsa and lay-opinion not sufficient; no defect issue.
Did the district court abuse its discretion in sanctions against Ayala's counsel? Counsel acted to protect rights; filing second action was necessary to avoid prescription and malpractice risk. Counsel acted vexatiously and without proper basis; sanctions warranted. Sanctions reversed; no bad faith shown.

Key Cases Cited

  • Mumfrey v. CVS Pharmacy, Inc., 719 F.3d 392 (5th Cir. 2013) (improper-joinder standard on removal petitions)
  • Campbell v. Stone Ins., Inc., 509 F.3d 665 (5th Cir. 2007) (motion to remand standard)
  • McDonal v. Abbott Labs., 408 F.3d 177 (5th Cir. 2005) (heavy burden for improper-joinder)
  • Griggs v. State Farm Lloyds, 181 F.3d 694 (5th Cir. 1999) (post-removal evidence not considered for improper-joinder)
  • Smallwood v. Ill. Cent. R.R. Co., 385 F.3d 568 (5th Cir. 2004) (en banc; mere possibility not enough for improper joinder)
  • Seacor Holdings Inc. v. Commonwealth Ins. Co., 635 F.3d 675 (5th Cir. 2011) (choice of law in diversity cases; use of state-law standards)
  • Prytania Park Hotel, Ltd. v. Gen. Star Indem. Co., 179 F.3d 169 (5th Cir. 1999) (Louisiana evidentiary principles and primary sources of law)
  • Stahl v. Novartis Pharms. Corp., 283 F.3d 254 (5th Cir. 2002) (four elements of LPLA liability)
  • Hanover Am. Ins. Co. v. Trippe Mfg. Co., 843 So.2d 571 (La. Ct. App. 2003) (circumstantial evidence in causation; eliminating other causes)
  • Smith v. Gen. Motors Corp., 722 So.2d 348 (La. Ct. App. 1998) (need for evidentiary support beyond conjecture)
  • Gladney v. Milam, 911 So.2d 366 (La. Ct. App. 2005) (expert speculation insufficient for defect issue)
Read the full case

Case Details

Case Name: Patricia Ayala v. Gabriel Building Supply
Court Name: Court of Appeals for the Fifth Circuit
Date Published: May 28, 2014
Citation: 569 F. App'x 241
Docket Number: 13-30532, 13-31246
Court Abbreviation: 5th Cir.