The
decision overturned a San Diego Superior Court ruling that the
world's biggest online retailer was shielded from liability
because it acted as a service provider, which is not subject to
California product liability law.
In addition to selling its own inventory, Amazon allows
third-party vendors to list products for sale on its website.
Such vendors may store their products in Amazon's warehouses or
ship them directly to customers.
The appeals court found that Amazon played a pivotal role in
every step of plaintiff Angela Bolger's purchase of a
replacement laptop battery from Amazon third-party seller Lenoge
Technology HK Ltd, which was operating under the fictitious name
"E-Life." Bolger alleged that the battery burst into flames
while she balanced the laptop on her thighs, resulting in severe
burns to her arms, legs and feet.
"Whatever term we use to describe Amazon's role, be it
'retailer,' 'distributor,' or merely 'facilitator,' it was
pivotal in bringing the product here to the consumer," the
appeals court held.
Amazon has faced multiple lawsuits seeking to hold it
responsible for damage or injuries caused by defective products
sold by third parties, including ones based overseas in China,
with most courts concluding it is not a "seller" under various
states' product liability laws. But a few rulings have gone the
other way and have allowed Amazon to be sued.
Both Pennsylvania's and Ohio's top courts are currently
considering the issue, and federal appeals courts are weighing
cases under California and Texas law.
The case decided on Thursday drew friend-of-the-court briefs
from plaintiff lawyer groups and corporate groups.
The ruling comes as California lawmakers weigh legislation that
would put Amazon and other operators of online marketplaces on
equal footing under the state's strict liability law.
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