Liability on Trade Associations
On April 22, 2008, Jose Padilla’s three-year old son choked to death after he became entangled in the metal-beaded chain cord of some mini-blinds in his home. The plaintiff, Padilla, sued the manufacturer and two trade associations; the Window Covering Manufacturers Association (WCMA) and the Window Covering Safety Council (WCSC).
The plaintiff’s complaint cited section 324A of the Restatement (Second) of Torts and alleged that liability extended to WMCA and WCSC because the trade associations voluntarily undertook a duty to warn about the dangers of strangulation after providing retrofit kits and instructions to eliminate the choking hazard.
The two trade associations argued Illinois courts have declined to impose liability on trade associations under the theory of voluntary undertaking. They further argued that courts have found no duty where trade associations are not involved in the manufacturing process or do not exercise a degree of control over association members. (For example, courts have found no duty when trade associations issue advisory, non-mandatory guidelines for their members. Bailey v. Edward Hines Lumber Co., 719 N.E.2d 178, 308 Ill. App. 3d 58 (1999). )
A federal district judge denied the defendants’ motion to dismiss, concluding that the associations MAY be liable. First there was no indication that the trade associations issued merely “non-mandatory” guidelines. Second, the facts in the case were not like the cases cited by the defendant. In those cases the issue was “control over association members,” who manufacture. Here, the issue was whether the association itself failed to safely manufacture the retrofit kits and whether the association warned about their risks. Thus, those cases did not preclude the defendants’ liability.
The Court pointed out that going forward the defendants are free to raise more issues after discovery. The defendants can try to prove that their undertaking was narrower in scope and did not have a broad effect on consumers. Also, they can show that Illinois does not recognize a common law duty to provide post sale warnings or to recall products after they have been sold.