Opinion ID: 2093927
Heading Depth: 1
Heading Rank: 5

Heading: Risk-Utility Test

Text: Under the risk-utility test, a plaintiff may prevail in a strict liability design-defect case if he or she demonstrates that the magnitude of the danger outweighs the utility of the product, as designed. Lamkin, 138 Ill.2d at 529, 150 Ill.Dec. 562, 563 N.E.2d 449. Stated differently, [t]he utility of the design must therefore be weighed against the risk of harm created and [i]f the likelihood and gravity of the harm outweigh the benefits and utilities of the product, the product is unreasonably dangerous. 63A Am.Jur.2d Products Liability § 978, at 146-47 (1997). Relying on Scoby v. Vulcan-Hart Corp., 211 Ill.App.3d 106, 155 Ill.Dec. 536, 569 N.E.2d 1147 (1991), Scripto argues there is a simple product exception to the application of the risk-utility test. In other words, Scripto contends that, when a product is deemed simple, the risk-utility test need not be employed. We disagree. In Scoby, an individual was injured while working in a restaurant kitchen when he slipped and fell and his arm became submerged in hot oil contained in an open deep-fat fryer. Scoby, 211 Ill.App.3d at 107, 155 Ill.Dec. 536, 569 N.E.2d 1147. The plaintiff sued the fryer manufacturer, alleging a design defect, and argued for liability under the risk-utility test. Scoby, 211 Ill.App.3d at 109, 155 Ill.Dec. 536, 569 N.E.2d 1147. Relying on Lamkin, the manufacturer argued that, because the danger at issue was not excessive, the risk-utility test should not be utilized. Scoby, 211 Ill.App.3d at 111-12, 155 Ill. Dec. 536, 569 N.E.2d 1147. The Scoby court agreed with the defendant. Scoby, 211 Ill.App.3d at 112, 155 Ill.Dec. 536, 569 N.E.2d 1147. Noting that hot oil in a fryer was an open and obvious danger and that, for efficient kitchen operation, it was often necessary to keep a lid off the fryer, the Scoby court concluded: We do not deem that Lamkin or other cases applying aspects of the danger-utility test intend that all manufacturers    should be subject to liability depending upon a trier of fact's balancing under that test   . Somewhere, a line must be drawn beyond which the danger-utility test cannot be applied. Considering not only the obvious nature of any danger here but, also, the simple nature of the mechanism involved, we conclude the circuit court properly applied only the consumer-user contemplation test. Scoby, 211 Ill.App.3d at 112, 155 Ill. Dec. 536, 569 N.E.2d 1147. Several appellate court decisions have followed Scoby in various situations giving rise to the so called simple product exception to the application of the risk-utility test. See Miller v. Rinker Boat Co., 352 Ill.App.3d 648, 664, 287 Ill.Dec. 416, 815 N.E.2d 1219 (2004); Mele v. Howmedica, Inc., 348 Ill.App.3d 1, 19, 283 Ill.Dec. 738, 808 N.E.2d 1026 (2004); Bates v. Richland Sales Corp., 346 Ill.App.3d 223, 234, 281 Ill.Dec. 356, 803 N.E.2d 977 (2004); Wortel v. Somerset Industries, Inc., 331 Ill.App.3d 895, 908, 264 Ill.Dec. 515, 770 N.E.2d 1211 (2002); Besse v. Deere & Co., 237 Ill. App.3d 497, 501-02, 178 Ill.Dec. 475, 604 N.E.2d 998 (1992). In support of their position that summary judgment was properly granted in their favor, Scripto also cites to Todd v. Societe Bic, S.A., 21 F.3d 1402 (7th Cir. 1994), wherein the court applied the Scoby exception to facts very similar to those in the case at bar. In Todd, a two-year-old child died when a four-year-old child used a Bic lighter to start a fire in the two-year-old's bedroom. Todd, 21 F.3d at 1403. The plaintiff filed a strict liability design-defect claim against the manufacturer, alleging the lighter was unreasonably dangerous because it did not contain a child-resistant safety device. Todd, 21 F.3d at 1404. The district court granted summary judgment in favor of the manufacturer and the plaintiff appealed. Todd, 21 F.3d at 1405. The Seventh Circuit Court of Appeals affirmed, concluding that the lighter was not unreasonably dangerous under the consumer-expectation test because it performed exactly as a consumer would expect  it produced a flame when activated. Todd, 21 F.3d at 1407. The Todd court then observed that this court had adopted a second test in strict liability design-defect cases, the risk-utility test. The court also observed, however, that in Scoby, a simple-product exception to application of this test had been adopted. Todd, 21 F.3d at 1410-11. Noting that this court had not yet addressed the Scoby exception, the Todd court opined that this court would not apply the risk-utility test to simple but obviously dangerous products. Todd, 21 F.3d at 1412. The Todd court then concluded the lighter was a simple product and, for that reason, the risk-utility test was not applicable. Todd, 21 F.3d at 1412. While this court has made reference to Scoby in past decisions, we have never had occasion to squarely address the simple-product exception it adopted. See Blue, 215 Ill.2d at 108, 293 Ill.Dec. 630, 828 N.E.2d 1128; Hansen, 198 Ill.2d at 437, 261 Ill.Dec. 744, 764 N.E.2d 35. We do so now. Upon close examination of Scoby, we find that it uses simple and open and obvious as separate components. However, in our view, the dangers associated with a product that is deemed simple are, by their very nature, open and obvious. See, e.g., Swix, 373 F.3d at 684-85 (finding that the fact that a product may be a `simple tool' is not dispositive in a design defect case  the obviousness of a danger is merely one factor in the analysis of whether the risks are unreasonable in light of the foreseeable injuries). We conclude, then, that Scoby's adoption of a simple product exception is nothing more than the adoption of a general rule that a manufacturer will not be liable for open and obvious dangers. A majority of courts have rejected the notion that the open and obvious danger of a product is an absolute defense to a defective-design claim in strict liability. Restatement (Third) of Torts: Products Liability § 2, Reporters' Note, Comment d, at 84-85 (1998) (identifying 25 jurisdictions that have rejected a per se rule). See also American Law of Products Liability 3d § 28:82, at 28-108 (1997); 61 Tenn. L.Rev. at 1227-28. We, too, recognized this principle in Blue, when this court stated: In strict products liability cases, the open and obvious nature of the risk is just one factor to be considered in the range of considerations required by the risk-utility test, and it will only serve to bar the liability of the manufacturer where it outweighs all other factors to be considered in weighing the inherent design risks against the utility of the product as manufactured. Blue, 215 Ill.2d at 103, 293 Ill.Dec. 630, 828 N.E.2d 1128. [3] Moreover, this court noted that such a ruling appeared to be consistent with Illinois law. Blue, 215 Ill.2d at 103, 293 Ill.Dec. 630, 828 N.E.2d 1128, citing Coney v. J.L.G. Industries, Inc., 97 Ill.2d 104, 119, 73 Ill.Dec. 337, 454 N.E.2d 197 (1983) (assumption of risk is not a bar to recovery in strict liability). See also Miller, 352 Ill.App.3d at 661, 287 Ill.Dec. 416, 815 N.E.2d 1219; Wortel, 331 Ill.App.3d at 902, 264 Ill.Dec. 515, 770 N.E.2d 1211. As one case has held, the obviousness of a risk inherent in a product, simple or nonsimple, does not by itself obviate a manufacturer's liability. Cacevic v. Simplimatic Engineering Co., 241 Mich.App. 717, 725, 617 N.W.2d 386, 390 (2000), vacated in part, 463 Mich. 997, 625 N.W.2d 784 (2001). Policy reasons also support rejection of a per se rule excepting simple products with open and obvious dangers from analysis under the risk-utility test. Adoption of such a rule would essentially absolve manufacturers from liability in certain situations even though there may be a reasonable and feasible alternative design available that would make a product safer, but which the manufacturer declines to incorporate because it knows it will not be held liable. This would discourage product improvements that could easily and cost-effectively alleviate the dangers of a product. A per se rule would also frustrate the policy of preventing future harm which is at the heart of strict liability law. See 1 Madden & Owens on Product Liability § 8:3, at 447 (noting that the consumer-expectation test limited by the open and obvious doctrine perniciously rewards manufacturers for failing to adopt cost-effective measures to remedy obviously unnecessary dangers to human life and limb); Restatement (Third) of Torts: Products Liability § 2, Comment a, at 16 (1998) (strict liability for design defects creates incentives for manufacturers to achieve optimal levels of safety in designing and marketing products); Restatement (Third) of Torts: Products Liability § 2, Reporters' Note, Comment a, at 40 (1998) (strict liability promotes investment in product safety). Accordingly, we hold that the open and obvious danger of a product does not create a per se bar to a manufacturer's liability, nor does it preclude application of the risk-utility test. Rather, the open and obvious nature of a danger is one factor that may be weighed in the risk-utility test. Blue, 215 Ill.2d at 103, 293 Ill.Dec. 630, 828 N.E.2d 1128. See also Restatement (Third) of Torts: Products Liability § 2, Reporters' Note, Comment d, at 85 (1998). We reject Scoby's adoption of a per se rule excepting simple products with open and obvious dangers from analysis under the risk-utility test. Accordingly, we reject Scripto's assertion that only the consumer-expectation test applies here. We now consider whether Calles presented sufficient evidence under the risk-utility test to withstand summary judgment. Under the risk-utility test, a court may take into consideration numerous factors. In past decisions, this court has held that a plaintiff may prove a design defect by presenting evidence of the availability and feasibility of alternate designs at the time of its manufacture, or that the design used did not conform with the design standards of the industry, design guidelines provided by an authoritative voluntary association, or design criteria set by legislation or governmental regulation. Anderson v. Hyster Co., 74 Ill.2d 364, 368, 24 Ill.Dec. 549, 385 N.E.2d 690 (1979). See also Hansen, 198 Ill.2d at 436, 261 Ill.Dec. 744, 764 N.E.2d 35 (feasibility of alternative design relevant); Moehle v. Chrysler Motors Corp., 93 Ill.2d 299, 304, 66 Ill.Dec. 649, 443 N.E.2d 575 (1982) (evidence of compliance with governmental regulations relevant in design defect cases to determine whether a product is unreasonably dangerous); Rucker v. Norfolk & Western Ry. Co., 77 Ill.2d 434, 436-39, 33 Ill.Dec. 145, 396 N.E.2d 534 (1979) (same); Kerns v. Engelke, 76 Ill.2d 154, 162-63, 28 Ill.Dec. 500, 390 N.E.2d 859 (1979) (feasibility of alternative design relevant). Although all of these cases, except Hansen, preceded the adoption of the risk-utility test in Illinois, we find the factors set forth in these cases are relevant when engaging in risk-utility analysis. See Blue, 215 Ill.2d at 92, 293 Ill.Dec. 630, 828 N.E.2d 1128 (noting the rationale of Anderson appears to partially set forth the risk-utility test). John W. Wade, dean and professor of law, emeritus, Vanderbilt University School of Law, has also identified several factors relevant when engaging in risk-utility analysis. These factors include: (1) The usefulness and desirability of the product  its utility to the user and to the public as a whole. (2) The safety aspects of the product  the likelihood that it will cause injury, and the probable seriousness of the injury. (3) The availability of a substitute product which would meet the same need and not be as unsafe. (4) The manufacturer's ability to eliminate the unsafe character of the product without impairing its usefulness or making it too expensive to maintain its utility. (5) The user's ability to avoid danger by the exercise of care in the use of the product. (6) The user's anticipated awareness of the dangers inherent in the product and their availability, because of general public knowledge of the obvious condition of the product, or of the existence of suitable warnings or instructions. (7) The feasibility, on the part of the manufacturer, of spreading the loss by setting the price of the product or carrying liability insurance. J. Wade, On The Nature of Strict Tort Liability for Products, 44 Miss. L.J. 825, 837-38 (1973). Wade's factors have been adopted and relied upon by numerous jurisdictions, including our own appellate court. See LaBelle v. Philip Morris, Inc., 243 F.Supp.2d 508, 515 n. 4 (D.S.C.2001); Nemir v. Mitsubishi Motors Sales Corp. of America, 60 F.Supp.2d 660, 674 (E.D.Mich.1999), aff'd in part, rev'd in part, 6 Fed. App'x 266 (6th Cir.2001); Dart v. Wiebe Manufacturing, Inc., 147 Ariz. 242, 245-46, 709 P.2d 876, 879-80 (1985); Armentrout v. FMC Corp., 842 P.2d 175, 184 n. 10 (Colo.1992); Potter v. Chicago Pneumatic Tool Co., 241 Conn. 199, 213 n. 10, 694 A.2d 1319, 1330 n. 10 (1997); Tabieros v. Clark Equipment Co., 85 Hawai'i 336, 366, 944 P.2d 1279, 1309 (1997); Wortel, 331 Ill.App.3d at 904, 264 Ill.Dec. 515, 770 N.E.2d 1211; Banks v. Iron Hustler Corp., 59 Md.App. 408, 425-26 & n. 3, 475 A.2d 1243, 1252 & n. 3 (1984); Nunnally v. R.J. Reynolds Tobacco Co., 869 So.2d 373, 379-80 (Miss.2004); Duke v. Gulf & Western Manufacturing Co., 660 S.W.2d 404, 411-12 (Mo.App. 1983); Johansen v. Makita U.S.A., Inc., 128 N.J. 86, 96, 607 A.2d 637, 642-43 (1992); Duran v. General Motors Corp., 101 N.M. 742, 747, 688 P.2d 779, 784 (App. 1983); Rainbow v. Albert Elia Building Co., 79 A.D.2d 287, 291 n. 2, 436 N.Y.S.2d 480, 483 n. 2 (1981), aff'd, 56 N.Y.2d 550, 449 N.Y.S.2d 967, 434 N.E.2d 1345 (1982); Roach v. Kononen/Ford Motor Co., 269 Or. 457, 464, 525 P.2d 125, 128-29 (1974); Phatak v. United Chair Co., 756 A.2d 690, 694 (Pa.Super.2000); Ray v. BIC Corp., 925 S.W.2d 527, 532, 533 n. 10 (Tenn.1996). Lastly, we find that when assessing the utility of a product, the following factors may also be relevant: (1) the appearance and aesthetic attractiveness of the product; (2) its utility for multiple uses; (3) the convenience and extent of its use, especially in light of the period of time it could be used without harm resulting from the product; and (4) the collateral safety of a feature other than the one that harmed the plaintiff. American Law of Products Liability 3d § 28:19, at 28-30 through 28-31 (1997). Although we have listed a number of factors which courts may consider when assessing risk-utility, we do not mean to imply that the list is exclusive. The factors cited merely illustrate those that may assist a court and jury in evaluating whether a design is unreasonably dangerous. A plaintiff need not present proof on each of the factors. In the first instance, the court must balance factors it finds relevant to determine if the case is a proper one to submit to the jury. Restatement (Third) of Torts: Products Liability § 2, Reporters' Notes, Comment e, at 94 (1998). Once this threshold determination has been met, it is up to the fact finder to determine the importance of any particular factor, and its relevance, and the relevance of other factors, will vary from case to case. See Restatement (Third) of Torts: Products Liability § 2, Comment f, at 23 (1998). We now apply those factors identified above to the evidence presented in the case at bar. After reviewing the evidence presented, we find the only factor which favors Calles and a finding of unreasonably dangerous is the second Wade factor  safety aspects. Calles presented specific and detailed evidence as to the likelihood of injury and the seriousness of injury from lighters which do not have child-safety devices. Factors which would favor Scripto and a finding that the product is not unreasonably dangerous are the first and sixth Wade factors  the utility of the Aim N Flame and the user's awareness of the dangers. As to the utility of the Aim N Flame, it is both useful and desirable to society as a whole  it serves as an inexpensive alternative source of fire. Moreover, compared to other sources of fire, such as matches, it is more convenient and longer lasting since it is a multiuse product. The lighter may also be safer since it will extinguish if dropped on the floor while lit, unlike a match. With respect to the user's awareness of the dangers, there is no question, based on Calles' deposition testimony, that it was obvious to her that the lighter could come into the hands of a child and the dangers and risks that situation would pose. In connection with the remaining relevant factors, we find that these neither weigh for nor against a finding of unreasonably dangerous. Calles claims that a substitute product was available, but the only evidence she relies upon is the fact Bic introduced a child-resistant utility lighter in March 1998, the very same month of the incident here. This is insufficient to demonstrate that a substitute product was available at the time of the manufacture of the Aim N Flame. Calles offered expert affidavits regarding the availability and feasibility of an alternative design, including product impairment and cost factors, along with industry standards. Each expert opined, in a conclusory fashion, that a feasible alternative design existed. Kvålseth identified three alternative designs. Scripto argues that, although Kvålseth set forth these alternative designs, he failed to give a basis for his feasibility determination, nor did he show that these alternative designs met regulatory standards. In this regard, Scripto notes that the Consumer Product Safety Commission (CPSC), the regulatory body for these products, required safety devices on cigarette lighters beginning in 1994, but exempted utility lighters. It was not until 1999 that CPSC required safety devices on utility lighters. See, e.g., Bartholic v. Scripto-Tokai Corp., 140 F.Supp.2d 1098, 1117 (D.Colo.2000). CPSC exempted utility lighters because it was concerned about flashbacks (the build up of gas and resultant sudden flash when a lighter was not ignited properly). Specifically, CPSC feared that if a child-resistant device on a utility lighter needed to be reset between attempts, this could cause a delay in ignition, resulting in the increased risk of flashback. Scripto maintains that this concern shows that some of the child-resistant options proffered by Kvålseth in his affidavit were not, in fact, feasible. Scripto also disputes Calles' claim that there would be no impairment to the Aim N Flame from modification with a child-resistant safety device since she cites no evidence in support of her argument. With respect to the cost feasibility, Calles offered evidence through Kvålseth's affidavit. According to Kvålseth, the CPSC [Consumer Product Safety Commission] in the Proposed Rule dated September 20, 1998, has estimated that the rule will likely increase the cost of manufacturing utility lighters by about $0.40 per unit. The defendants have indicated that such a cost increase would only be a few cents per lighter. However, had a utility lighter    been originally designed to be effectively child resistant,    then the incremental cost due to an effective child-resistancy feature would have been negligible. There is nothing in our record showing Scripto provided any amount as to the increase in cost of incorporating a safety device. Apparently, according to Loyola, this information was offered into evidence in Flock, 319 F.3d 231, where an internal Scripto memorandum authored in 1996 estimated cost increase would be $0.03 per unit. In light of the foregoing, we conclude that a material issue of fact exists on the question of whether there was a feasible alternative design available, which cannot be determined on the basis of the record as it currently stands. Lastly, with respect to the user's ability to avoid the danger, Calles testified she put the Aim N Flames on the top shelf of her kitchen cabinet. However, she also acknowledged she could have left them on the counter. As Scripto maintains, the appellate court embraced the former testimony, despite contradictory evidence. This is a factual determination we cannot make. Based on a review of the foregoing factors, reasonable persons could differ on the weight to be given the relevant factors, particularly where additional proofs are necessary, and thus could differ on whether the risks of the Aim N Flame outweigh its utility. Therefore, reasonable persons could differ as to whether the Aim N Flame is unreasonably dangerous, and we cannot say that Scripto was entitled to judgment as a matter of law. As such, we affirm the appellate court's decision reversing the trial court's decision granting summary judgment in favor of Scripto on the strict liability claims.