Products Liability Law Reporter
Decisions: Consumer Products
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Defective ceiling fan case properly removed to federal court
January 10, 2023A federal district court held that a defendant in a defective ceiling fan case properly removed the cause of action to federal court.
Here, the Sostakowskis purchased a bathroom ceiling fan manufactured by Broan-NuTone LLC at Home Depot. The fan, which was installed in the Sostakowskis’ bathroom, ignited, starting a fire that damaged their home. Donegal Mutual Insurance Co., which insured the home, provided compensation for the damage. The insurer then wrote a letter to The Home Depot, Inc., seeking over $245,500 in restitution for the benefits paid to the Sostakowskis. The insurer argued it had determined that the ceiling fan was defective. In October 2021, Donegal, as subrogee, sued Broan-NuTone LLC and The Home Depot, Inc., in Pennsylvania state court, alleging strict liability. Home Depot removed the action to federal district court on the basis of diversity jurisdiction. Donegal moved to remand.
Denying the motion, the district court noted that a defendant seeking removal must file a notice of removal within 30 days of receiving service or a copy of an amended pleading, motion, order, or other paper from which it may be ascertained that the case is a matter that could become removable. The plaintiff argued that Home Depot had notice in February 2021 that the amount in controversy was more than $75,000 based on the presuit demand letter. Home Depot countered that presuit communications do not constitute “other papers.”
The court agreed with the defendant, citing case law holding that presuit testimony did not qualify as an “other paper” because of its presuit nature. The court found that the great weight of authority supported Home Depot’s position and that many decisions outside of the Third Circuit Court of Appeals have held that presuit communications are not “other papers.”
Finding that no party had disputed the existence of diversity in the case, the court concluded that it had jurisdiction.
Citation: Sostakowski v. Broan-NuTone LLC, 2023 WL 35746 (M.D. Pa. Jan. 4, 2023).
