Deleese Allen v. Walmart Stores, L.L.C.
Opinion
On Wednesday, April 13, 2016, Karalee Alaine Williams ("Williams") was found dead in her car in the parking lot of Wal-Mart Store #2439. Her death resulted from inhaling a large quantity of aerosol dust remover. Williams's mother, Plaintiff-Appellant Deleese Allen ("Allen"), brought negligence claims in her individual capacity, against Defendants-Appellees (1) Wal-Mart *176 Stores, LLC ("Wal-Mart") 1 and (2) three Wal-Mart employees, Gregory Mouton, Loretta Ann Brewer-Winter, and Shanda Marie Hutton (collectively the "Wal-Mart employees"). Allen also brought product liability claims against 3M Company ("3M") and IQ Products Company ("IQ"). The district court dismissed Allen's claims pursuant to Fed. R. Civ. P. 12(b)(6) for failure to state a claim on which relief could be granted. For the following reasons, we AFFIRM.
I. RELEVANT FACTUAL AND PROCEDURAL BACKGROUND
Williams entered Wal-Mart Store #2439 on nine different occasions over the course of twenty-seven (27) hours, each time purchasing cans of dust remover. She allegedly purchased at least sixty (60) cans of dust remover over that period.
During Williams's first visit on Sunday, April 10, 2016, she purchased a towel and cans of dust remover. On her second visit that day, she had soiled herself but proceeded to buy more cans of dust remover and told the checkout employee that she had had a seizure in the parking lot. On Williams's third visit the next morning, she entered the store naked from the waist down. Several Wal-Mart employees noticed her condition and communicated this to other employees. During that third visit, Wal-Mart employees gave Williams a towel and a "sundress." After receiving these items Williams purchased more cans of dust remover. During each of Williams's subsequent visits to Wal-Mart she allegedly bought more cans of dust remover. Early Tuesday morning, April 12, 2016, Williams died in the parking lot from the effects of inhaling dust remover, a process called "dusting," but her body was not discovered until the next day.
Allen initially sought a temporary restraining order ("TRO") and a permanent injunction in the 11th District Court of Harris County, Texas. Allen sought the temporary restraining order for the purposes of "preserving evidence, and the taking of evidence before it becomes inaccessible to normal discovery." Wal-Mart removed the case to the United States District Court for the Southern District of Texas, Houston Division based on diversity jurisdiction pursuant to
In response to Allen's motion to remand, Wal-Mart moved to strike the joinder of the Wal-Mart employees, asserting that they had only been added to defeat diversity jurisdiction. Wal-Mart also moved to strike IQ because Allen had notice that IQ was not the manufacturer of the dust remover Williams had purchased. Additionally, Wal-Mart amended its motion to dismiss because Allen had amended her complaint. The Wal-Mart employees also filed a motion to dismiss in their answer to Allen's complaint.
The district court denied Allen's motion to remand and granted Wal-Mart and the Wal-Mart employees' motions to dismiss as well as Wal-Mart's motion to strike joinder. The district court also denied Allen's request to amend her complaint through a motion to alter or amend judgment pursuant to Fed. R. Civ. P. 59(e) and a motion for relief from judgment or order pursuant to Fed. R. Civ. P. 60(b).
Allen timely appealed the district court's order dismissing her complaint and denying reconsideration. In July 2017, Allen's appeal was dismissed for want of prosecution, but it was reinstated in September 2017. On appeal, Allen contends that the district court erred in (1) granting the Defendants-Appellees' motions to dismiss pursuant to Fed. R. Civ. P. 12(b)(6), (2) denying Allen's motion to remand, and (3) denying Allen's request to amend her complaint.
II. ANALYSIS
1. Motion to Dismiss
We review de novo the district court's order on a motion to dismiss for failure to state a claim under Fed. R. Civ. P. 12(b)(6).
In re Katrina Canal Breaches Litig.
,
"To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.' "
Ashcroft v. Iqbal
,
"In analyzing the complaint, we will accept all well-pleaded facts as true, viewing them in the light most favorable to the plaintiff."
Jones v. Greninger
,
*178
Additionally, "[d]ismissal is proper if the complaint lacks an allegation regarding a required element necessary to obtain relief[.]"
Rios v. City of Del Rio, Tex.
,
Allen claims that the Defendants-Appellees acted negligently in continuing to sell Williams dust remover despite her impaired state. Allen alleges that the Defendants-Appellees are liable under a theory of negligence per se for violating Texas Health & Safety Code Chapter 485, and under the Texas theory of general negligence. Allen also alleges that the Defendants-Appellees breached a duty when they took affirmative steps to assist Williams.
Allen also alleges that Wal-Mart is independently liable for negligent entrustment pursuant to Restatement (Second) of Torts § 390 and that Wal-Mart breached a duty to Williams under a theory of premises liability. Allen further avers that Wal-Mart owed Williams a duty in the products liability context, invoking Texas Civil Practice & Remedies Code § 82.003(6) (2009).
"The common law doctrine of negligence consists of three elements: 1) a legal duty owed by one person to another; 2) a breach of that duty; and 3) damages proximately resulting from the breach."
Greater Hous. Transp. Co. v. Phillips
,
"Negligence per se is a common-law doctrine that allows courts to rely on a penal statute to define a reasonably prudent person's standard of care."
Reeder v. Daniel
,
a. Premises Liability
According to Allen, premises liability provides the strongest basis for holding that Wal-Mart owed Williams a duty to cease selling her dust remover in light of her diminished capacity. Allen's assertion is based on the Supreme Court of Texas's holding in
Del Lago Partners, Inc. v. Smith
,
Williams was an invitee of Wal-Mart, so Wal-Mart owed her a duty to "use ordinary care to reduce or eliminate an unreasonable risk of harm created by a premises condition about which the property owner knew or should have known."
*179
As we elaborate below, Wal-Mart did not owe Williams a duty under Texas Health & Safety Code § 485.031 to protect her from abusing the dust remover.
See
LaFleur v. Astrodome-Astrohall Stadium Corp.
,
b. Restatement (Second) of Torts § 390 (1965)
Allen does not assert negligent entrustment by name, but she does advance an underlying premise of negligent entrustment, i.e., that Wal-Mart had a duty not to sell Williams the dust remover because Wal-Mart had knowledge of Williams's diminished capacity and continued abuse of the dust remover. Under Restatement (Second) of Torts § 390 (1965) :
One who supplies directly or through a third person a chattel for the use of another whom the supplier knows or has reason to know to be likely because of his youth, inexperience or otherwise, to use it in a manner involving unreasonable risk of physical harm to himself and others whom the supplier should expect to share in or be endangered by its use, is subject to liability for physical harm resulting to them.
A Texas Court of Appeals referenced Section 390 in
Kennedy v. Baird
,
Allen concedes that sellers are not generally subject to liability under Section 390, but she asserts that a seller may be negligent when it has a duty not to sell a specific product. Allen cites
El Chico Corp. v. Poole
, in support of her proposition that Wal-Mart owed Williams a duty not to sell her cans of dust remover given her diminished capacity.
In this case, Wal-Mart did not owe a duty to Williams or the general public to prevent any harm resulting from Williams's inhalation of dust remover, unlike the seller in
El Chico
, regarding the sale of alcohol. Notably, Texas courts have not expanded the duty recognized in
*180
El Chico
to cover the sale of other potentially harmful products. The Texas legislature promptly responded to
El Chico
by enacting a Dram Shop Act and making it the exclusive basis for civil liability against alcohol providers.
See
Graff
,
The Supreme Court of Texas later declined to recognize a common law duty on social hosts who provide alcohol to guests, reasoning that there is no legal duty to control the conduct of another in the absence of a special relationship and "the common law's focus should remain on the drinker as the person primarily responsible for his own behavior and best able to avoid the foreseeable risks of that behavior."
Graff
,
Allen has not cited any Texas cases recognizing a duty not to sell abusable volatile chemicals to an impaired person, nor do we find such a duty under Texas law. Thus, El Chico is not applicable to this case. Accordingly, we hold that Wal-Mart is not liable for negligent entrustment.
c. Texas Health & Safety Code Chapter 485
It is illegal under Texas Health & Safety Code § 485.031 to inhale an abusable volatile chemical contrary to directions for its use or to its warnings, with the intent to among other things "create or induce a condition of intoxication, hallucination, or elation[.]" Further, it is illegal to "knowingly ... deliver[ ] or sell[ ] inhalant paraphernalia [to a person whom the seller knows intends to use it to abuse a volatile chemical]." Tex. Health & Safety Code § 485.033 (2001). 2
Texas Health & Safety Code Chapter 485 is a penal statute, and the parties contest whether Chapter 485 sets forth a civil standard of conduct. The district court addressed this dispute and held that Chapter 485 does not set forth a standard of conduct for a claim of negligence or negligence per se. We agree.
We find no caselaw in which any court has created civil tort liability based on Texas Health & Safety Code § 485.031, § 485.032, or § 485.033.
See
Praesel v. Johnson
,
For the same reasons, neither Wal-Mart nor the Wal-Mart employees can be held civilly liable for allegedly aiding and abetting Williams in violating Texas Health & Safety Code § 485.031.
d. Assumed Duty Pursuant to an Affirmative Action
"Texas law generally imposes no duty to take action to prevent harm to others absent certain special relationships or circumstances."
Torrington Co. v. Stutzman
,
Wal-Mart and the Wal-Mart employees may only be held liable for negligent undertaking if "(1) [they] undertook to perform services that [they] knew or should have known were necessary for [Williams's] protection, (2) [they] failed to exercise reasonable care in performing those services, and either (3) [Williams] relied upon [their] performance, or (4) [their] performance increased [Williams's] risk of harm."
Torrington Co.
,
Allen asserts that Wal-Mart and the Wal-Mart employees knew that Williams was abusing the dust remover and that when the Wal-Mart employees undertook actions to assist Williams on her third visit to the Wal-Mart by providing her with a towel and a sundress, they engendered a duty not to increase her risk of harm.
However, Allen failed to plead that the employees' alleged assistance either induced reliance or increased Williams's risk of harm.
See
Torrington Co.
,
e. Products Liability under Texas Civil Practice & Remedies Code § 82.003(6)
Pursuant to Texas Civil Practice & Remedies Code § 82.003(6), "[a] seller that did not manufacture a product is not liable for harm caused to the claimant by that product unless the claimant proves ...
*182 that ... the seller actually knew of a defect to the product at the time the seller supplied the product; and ... the claimant's harm resulted from the defect[.]"
Allen alleges that Wal-Mart "has long been aware of the hazards and dangers associated with inhalant abuse" and cites several instances where suits were brought against Wal-Mart because individuals had abused dust remover bought from Wal-Mart. However, Allen did not plead specific facts regarding any actual defect with respect to the dust remover that was sold to Williams. Allen's failure to plead specific facts regarding any actual defect in the dust remover sold to Williams is fatal to Allen's claim that Wal-Mart violated Section 82.003(6). Consequently, we conclude that Wal-Mart is not liable for negligence under a products liability theory. 3
f. Wal-Mart Employees' Individual Liability
Under
Leitch v. Hornsby
, "individual liability arises only when the officer or agent owes an independent duty of reasonable care to the injured party apart from the employer's duty."
2. Allen's Motion to Remand
The parties disagree as to the correct standard of review for Allen's motion to remand. Wal-Mart contends that the proper standard of review is abuse of discretion given that Allen amended her complaint after the case was removed.
See
Hensgens v. Deere & Co.
,
However, the proper standard of review of a district court's denial of a motion to remand is de novo.
Luckett v. Delta Airlines, Inc.
,
*183 The district court's ruling did not consider the propriety of the amendment itself, but instead considered whether there was proper joinder of the Wal-Mart employees. The district court sustained Wal-Mart's objection to joinder of the non-diverse Wal-Mart employees and granted Wal-Mart's motion to strike the non-diverse defendants.
"Under
"To demonstrate improper joinder of resident defendants, the removing defendants must demonstrate either: '(1) actual fraud in the pleading of jurisdictional facts, or (2) inability of the plaintiff to establish a cause of action against the non-diverse party in state court.' "
Gasch
,
There is no allegation of fraud in the pleadings alleged in this case. We thus must assess whether Allen has a basis of recovery against the Wal-Mart employees who would be non-diverse defendants. In assessing whether a plaintiff is able to establish a cause of action against the non-diverse party in state court, the test for improper joinder is "whether the defendant has demonstrated that there is no possibility of recovery by the plaintiff against an in-state defendant[.]"
Smallwood
,
As described in detail in our analysis of the Wal-Mart employees' motion to dismiss, those employees did not owe Williams any duty of care, especially since they were not prohibited from selling dust *184 remover to Williams who was an adult. 4 Therefore, reviewing the dismissal of Allen's motion to remand under a de novo standard of review, we affirm the district court's denial of Allen's motion to remand.
3. Allen's Motion to Replead
"[The Fifth Circuit] generally review[s] a decision on a motion to alter or amend judgment under Rule 59(e) for abuse of discretion."
Miller v. BAC Home Loans Servicing, L.P.
,
Allen sought to amend her complaint under Fed. R. Civ. P. 59(e) and 60(a). When a court enters a final judgment, a party may move to amend its complaint under Fed. R. Civ. P. 59(e) or 60 rather than under Fed. R. Civ. P. 15(a).
See
Rosenzweig
,
Allen asserts that she "is now in possession of additional party names not known when substantive motions were filed," and that the district court erred in not letting her amend her complaint to reflect the addition of these parties. Allen also asserts that she has SKU numbers (numbers used to identify inventory) as well as twelve point-of-sale receipts, which include twelve different Wal-Mart employee identification numbers. Allen claims that she has the names of eighteen Wal-Mart employees who "interacted with Plaintiff during her time at the Wal-Mart store."
In determining whether to allow a party to amend its complaint, "[t]he court should freely give leave [to amend] when justice so requires." Fed. R. Civ. P. 15(a)(2). The United States Supreme Court has listed several factors for a court to consider when it analyzes a party's motion for leave to amend, including "undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, [and] futility of amendment[.]"
Foman v. Davis
,
"[O]utright refusal to grant the leave without any justifying reason appearing for the denial is not an exercise of discretion; it is merely abuse of that discretion and inconsistent with the spirit of the Federal Rules."
Allen sought to amend her complaint to add non-diverse parties after the case has been removed, so the district court must apply a higher level of scrutiny than required under Fed. R. Civ. P. 15(a).
See
Hensgens
,
The district court denied Allen's request to amend her complaint because it did not fall under either Fed. R. Civ. P. 59(e) or 60(b). Beyond that, the district court did not provide any further reasons for denying Allen's request to amend her complaint. The lack of analysis does not automatically require us to determine that the district court abused its discretion, but "the [district court's] reasons [for denial] would have to be readily apparent[.]"
Dussouy
,
The parties that Allen sought to add were: (1) Wal-Mart employees who sold Williams cans of dust remover, and (2) the manufacturer of the dust remover, Falcon Safety Products. The Wal-Mart employees that Allen sought to add are assumed to be Texas citizens, which would compromise our subject matter jurisdiction over this case. Allen alleges that "[m]ultiple individuals ... were negligent and violated Texas Health & Safety Code § 485 by providing abusable volatile chemicals to [Williams] ... and they violated the basic common law duty not to provide a mentally impaired person with goods or materials by which the mentally impaired person could injure themselves or others."
Looking at the exhibits attached to Allen's motion, the receipts allegedly *186 have employee identification numbers, which would allow Allen to identify the employees who interacted with Williams. However, even if Allen had the exact identification of the Wal-Mart employees who interacted with Williams, these Wal-Mart employees would not be liable for the reasons outlined above.
The district court did not explicitly weigh the Hensgens factors but the fact that Allen would still fail to state a plausible claim against any Wal-Mart employee gives an apparent reason for the district court's denial of Allen's motion to amend. 6 Additionally, Allen's continued failure to state a plausible claim would outweigh the other Hensgens factors.
As to Falcon Safety Products, Allen was dilatory in seeking to add this manufacturer. Allen had knowledge that Falcon Safety Products was the correct manufacturer as early as the day that she filed her amended complaint. In a prior exchange, Wal-Mart's Counsel had sent an e-mail to Allen's Counsel stating that "the brand of the electronics cleaner Karalee Williams bought was Dust-Off." Allen's Counsel stated that he did not see this e-mail until after the complaint was filed; however, Allen did not file a separate request to amend until almost a year after gaining knowledge of the correct manufacturer.
The district court noted that Allen filed suit against the wrong manufacturers, IQ and 3M, and dismissed them from the case. Allen had prior knowledge that Falcon Safety Products was the actual manufacturer, but she never sought to amend her complaint before the district court ruled on the Defendants-Appellees' motions to dismiss. Therefore, allowing Allen to amend her complaint at this stage would not be proper because it would impose an undue burden on the court. See Mayeaux , 376 F.3d at 426 ("[D]elay alone is an insufficient basis for denial of leave to amend: [t]he delay must be undue , i.e., it must prejudice the non[-]moving party or impose unwarranted burdens on the court."). The dilatory nature of Allen's request to add Falcon Safety Products and the burdensome effect that adding Falcon Safety Products would have on the court outweigh the other Hensgens factors. 7
III. CONCLUSION
For the reasons stated above, we AFFIRM the district court's denial of Allen's complaint for her failure to state a claim on which relief can be granted. 8 We also (1) AFFIRM the district court's denial of Allen's motion to remand and (2) AFFIRM that court's denial of Allen's motion to alter or amend as to her request to amend *187 her complaint and for more time to conduct discovery.
There was some confusion over who was the correct Defendant in the case, Wal-Mart Stores, LLC or Wal-Mart Stores Texas, LLC. The district court determined that the correct party was Wal-Mart Stores Texas, LLC given that it answered Allen's complaint. Allen does not explicitly challenge the district court's finding that Wal-Mart Stores Texas, LLC is the correct defendant, but she does assert that Wal-Mart did not "properly allege its citizenship." In its notice of removal, Wal-Mart alleges that it is a "limited liability company formed under the laws of Delaware, with its principal place of business in Arkansas." "Wal-Mart[,Inc.] is a publicly traded corporation which owns and operates retail stores in Texas, in part through its wholly-owned subsidiaries [which includes Wal-Mart Stores Texas, LLC]."
Wal-Mart Stores, Inc. v. Tex. Alcoholic Beverage Comm'n
, No. 1-15-CV-134 RP,
The cans of dust remover themselves are not considered "paraphernalia" given the definitions denoted in Section 485.001. The dust remover would be considered an "abusable volatile chemical" because it "is packaged in a container subject to [specific] labeling requirements[.]" Tex. Health & Safety Code § 485.001(1)(A)(i) (2015). The towels could be considered paraphernalia because they are made of fabric. Tex. Health & Safety Code § 485.001(8) (2015).
We also note that the claims against IQ and 3M were also properly dismissed.
There is no improper joinder if the reason "that there is no reasonable basis for predicting that state law would allow the plaintiff to recover against the in-state defendant necessarily compels the same result for the non[-]resident defendant."
See
Smallwood
,
See
Dussouy
,
See
Moore v. Manns
,
Allen also sought more time for discovery, however, because we affirm the district court's denial of Allen's motion to amend, we decline to address whether Allen should be entitled to more discovery.
Allen asserts for the first time on appeal that the district court erred by denying her due process in dismissing her claims on evidentiary grounds. Because Allen did not raise this claim in the district court, we decline to address this claim.
See
NCDR, L.L.C. v. Mauze & Bagby, P.L.L.C.,
Reference
- Full Case Name
- Deleese ALLEN, Plaintiff-Appellant v. WALMART STORES, L.L.C.; Gregory Mouton ; Loretta Brewer-Winter; Shanda Hutton, Defendants-Appellees
- Cited By
- 131 cases
- Status
- Published