Keller v. Welles Dep’t Store of Racine, 88 Wis. 2d 24, 276 N.W.2d 319 (Wis. Ct. App. 1979)

Facts

  • Two-and-a-half-year-old Stephen Keller and two-year-old William Sperry played unsupervised in the Sperry home basement.
  • The children obtained and used a gasoline can manufactured by Huffman Manufacturing Co. and purchased by William’s father at Welles Department Store.
  • The can contained gasoline; the children poured gasoline near a gas furnace and hot water heater.
  • The gasoline ignited, likely from pilot lights, and Keller suffered severe burns.
  • Keller alleged the can lacked a child-proof cap or comparable safety device, making it defectively designed and unreasonably dangerous; Keller also alleged negligent design and sale by the manufacturer and retailer.
  • After other defendants’ claims were settled, Keller proceeded against the manufacturer, the retailer, and William’s mother (not part of this appeal).

Issues

  1. Whether the complaint stated a claim for strict products liability against the manufacturer and retailer based on a gasoline can sold without a child-resistant cap.
  2. Whether the complaint stated a claim for negligence against the manufacturer and retailer for failing to design and sell a reasonably safe gasoline can.
  3. Whether public policy barred liability as a matter of law at the pleading stage.

Decision

  • The appellate court affirmed the order denying the manufacturer’s and retailer’s motion to dismiss for failure to state a claim.
  • The complaint sufficiently alleged a strict liability claim by pleading a defective condition that was unreasonably dangerous and a substantial factor in causing injury.
  • The complaint sufficiently alleged a negligence claim based on foreseeability of child access to gasoline cans and the alleged availability of simple, low-cost safety measures.
  • Public policy did not justify dismissal on the pleadings; those limitations required factual development.
  • On a motion to dismiss for failure to state a claim, the court accepts as true all well-pleaded facts and reasonable inferences and dismisses only if no relief is possible under any provable set of facts consistent with the allegations.
  • A strict products liability claim is adequately pleaded by alleging a defective condition that is unreasonably dangerous, existed when the product left the seller, and was a substantial factor in producing injury.
  • Manufacturers and retailers owe a duty of ordinary care to persons foreseeably endangered by product design and marketing; allegations of foreseeable risk and substantial-factor causation can state a negligence claim.
  • Public policy limits on liability generally are not resolved on pleadings when the assessment depends on a developed factual record.

Conclusion

The court permitted the case to proceed because the complaint plausibly alleged that selling a gasoline can without a child-resistant closure could constitute both a defective, unreasonably dangerous design and negligent conduct, and it was premature to deny liability on public policy grounds without evidence.