Background
An Amazon driver delivered a defective battery sold by a third-party Chinese company to a customer. The battery caught fire, causing over three million dollars in property damage. The customer’s insurer, Berkley Regional Insurance Company, sued Amazon and the seller in federal court after removing the case from state court. The insurer sought certification of a question regarding Amazon’s liability but the district court made an Erie guess instead.
The court’s reasoning
The court determined that the Minnesota Supreme Court should decide whether Amazon is strictly liable for third-party products sold through its fulfillment program. The Eighth Circuit cited the novelty of the question, the lack of clear guidance in Minnesota law or the Restatement of Torts, and the widespread public importance of the issue. The court emphasized that certification promotes cooperative federalism and allows the state court to balance policy tradeoffs.
To certify, or not to certify, that is the question.
Opinion at page 2
What it means going forward
The proceedings are stayed pending the Minnesota Supreme Court’s decision on the certified question. This ensures a binding state-law answer for future cases involving similar e-commerce transactions.