In Peterson et al. 402A *21 (1965)), the loss will ordinarily be ultimately borne by the party that created the risk. U. Chi. -5-Bachrodt Chevrolet Co., 76 Ill. 2d 353, 363 (1979) (citing Adams Co. v. George, 227 Ill. 64, 69 (1907)). v. Lou Bachrodt Chevrolet Co. (1979), the Supreme Court affirmed and clarified the law on collateral source issues which apply to medical services. (See Suvada v. White Motor Co. (1965), 32 Ill. 2d 612, 624; Texaco, Inc. v. McGrew Lumber Co. (1969), 117 Ill. App.2d 351; 2 L. Frumer & M. Friedman, Products Liability, ch. 452 So.2d at 515-16. 3, sec. These pleadings present no such issues, and assuming, arguendo, that in some future case they will arise, there is precedent for weighing the cost of remedying the dangerous condition against the nature and extent of the risk which it creates. 121 1/2, par. (Ill. Rev. In Dunham v. Vaughan & Bushnell Mfg. 444, 448, 392 N.E.2d 1, 5 (1979)). (Peterson v. Lou Bachrodt Chevrolet Co. (1975), 61 Ill. 2d 17.) The Court wrote: The final issue raised by the parties is whether plaintiff may re- The Court also explicitly overruled Peterson v. Lou Bachrodt Chevrolet Co. , 76 Ill. 2d 353 (1979), which held that the "policies underlying the collateral source rule did not apply when the plaintiff incurred no expense, obligation, or liability in receiving the … In Dunham v. Vaughan & Bushnell Mfg. Who gets the benefit of the discount - the plaintiff or the defendant? Gale S. Molovinsky, of Washington, D.C., for amicus curiae National Automobile Dealers Association. I submit that there is no basis for distinguishing a defect resulting from repairs made by a used car dealer and a defect which exists by reason of his failure to make a reasonable inspection, and that both should be the basis for imposing strict liability. Plaintiff's daughter was killed and his son was seriously injured in an accident allegedly caused by a defective braking system in a used car sold by defendant to a third party. In that case we pointed out: "The strict liability of a retailer arises from his integral role in the overall producing and marketing enterprise and affords an additional incentive to safety." No intimations of an expanded public policy concerning a used car dealer's responsibility for the condition of the car he sells can be drawn from the severely restrictive provisions of this statute. 402A, Comment f. The plaintiff asserts that public policy demands that used car dealers be made responsible for discovering all discoverable defects and insuring against all that are undiscoverable. WHY? Two issues are presented on this appeal: first, whether as a matter of law, strict liability extends to the seller of a used car and, second, whether a bystander who has been struck by a defective and unreasonably dangerous car may sue under a theory of strict liability. (Dunham v. Vaughan & Bushnell Mfg. Full text of Peterson v. Lou Bachrodt Chevrolet Co., 61 Ill. 2d 17 (1975) from the Caselaw Access Project. Gale S. Molovinsky, Washington, D.C., for amicus curiae National Automobile Dealers Ass'n. It is axiomatic that a used car dealer owes a duty to make a reasonable inspection of an automobile prior to selling it. The automobile involved in the accident was a used 1965 Chevrolet. If you would like access to the new version of the H2O platform and have not already been contacted by a member of our team, please contact us at h2o@cyber.law.harvard.edu. Co. (1969), 42 Ill. 2d 339, 344; Vandermark v. Ford Motor Co. (1964), 61 Cal. PETERSON v. LOU BACHRODT CHEVROLET CO. Email | Print | Comments (0) No. (See Realmuto v. Straub Motors, Inc. (1974), 65 N.J. 336, 322 A.2d 440.) The Appellate Court, Second District, reversed (17 Ill. App.3d 690), and we granted leave to appeal. Peterson v. Lou Bachrodt Chevrolet Co., 76 Ill. 2d 353, 363, 392 N.E.2d 1, 29 Ill.Dec. 336, 322 A.2d 440, and by implication attempt to distinguish it on the ground that there is no allegation "that the defects were created by the used car dealer." Maradean died on the day of the accident while Mark sustained substantial injuries including leg amputation. Each count alleged that the defendant, Lou Bachrodt Chevrolet Company, had sold the 1965 Chevrolet on June 11, 1971, in the ordinary course of business, and that at the time the automobile left the defendant's control it was defective and not reasonably safe for driving and operation in that: Therefore, although liability is imposed upon anyone who is engaged in the business of selling the product (Restatement (Second) of Torts sec. The judgment of the Appellate Court, Second District, *22 is reversed. Section 2L was added to the Consumer Fraud Act in 1967. Imposition of liability upon wholesalers and retailers is justified on the ground that their position in the marketing process enables them to exert pressure on the manufacturer to enhance the safety of the product. Rptr. The defendant was erroneously designated as "Lou Backrodt Chevrolet Co." in the published opinion of the court. Listed below are those cases in which this Featured Case is cited. The jury properly heard all the relevant evidence on future damages. Supreme Court of Illinois. James A. Peterson, administrator of the estate of Maradean Peterson, and Mark Peterson, by James A. Peterson, his father and next friend, brought this action against the driver of the used car, its owners, and the defendant involved in the appeal, Lou Bachrodt Chevrolet Company. Moreover, "any lay person with a reasonable opportunity to observe and ordinary … 3d 690, 307 N.E.2d 729 (1974). These defects would have been discovered upon reasonable inspection of the vehicle. This means you can view content but cannot create content. See Restatement (Second) of Torts sec. NATURE OF THE CASE: Lou Bachrodt (D) appealed the decision of the Appellate Court holding that D, a used car dealership, may be held to strict liability in Peterson's (P) action to recover for wrongful death. See Peterson v. Lou Bachrodt Chevrolet Co., 61 Ill. 2d 17, 20-21, 329 N.E.2d 785, 787 (1975). We decline to do so. (32 Ill.2d. 110A, par. This claim was based on strict liability and asserted that Lou Bachrodt Chevrolet Co. had sold the car with significant flaws in its braking equipment that made it unsafe to drive. Peterson v. Lou Bachrodt Chevrolet Co. dealer is not strictly liable for used cars. Co., 42 Ill.2d 339, 247 N.E.2d 401, strict liability was made applicable to a wholesaler and retailer for the reason that 'these considerations apply with equal compulsion to all elements in the distribution system.' Griffin, Winning, Lindner, Newkirk, Cohen, Bodewes & Narmont, Springfield. [61 Ill.2d 20] In Suvada v. White Motor Co. (1965), 32 Ill.2d 612, 210 N.E.2d 182, we held that a manufacturer is liable under a theory of strict liability if the plaintiffs 'prove that their injury or damage resulted from a condition of the product, that the condition was an unreasonably dangerous one and that the condition existed at the time it left the manufacturer's control.' The rationale underlying the application of strict liability to a manufacturer is that losses should be borne by those 'who have created the risk and reaped the profit by placing the product in the stream of commerce.' Case Date: February 01, 1974: Court: Court of Appeals of Illinois These same considerations require application of strict liability principles to the business of selling used automobiles. The supreme court held in Peterson v. Lou Bachrodt Chevrolet Co., 76 Ill. 2d 353, 392 N.E.2d 1 (1979) that "automobile speed was not a matter beyond the ken of the average juror." The circuit court of Winnebago County dismissed two counts of the complaint and found that there was no reason to delay appeal from that judgment. (32 Ill.2d 612, 623, 210 N.E.2d 182, 188.) The rationale underlying the application of strict liability to a manufacturer is that losses should be borne by those "who have created the risk and reaped the profit by placing the product in the stream of commerce." 1973, ch. In Galluccio v. Hertz Corp., 1 Ill.App.3d 272, 274 N.E.2d 178, Appeal denied, 49 Ill.2d 575, the appellate court held strict liability applicable to the lessor of a motor vehicle. The trial court dismissed the claims and the appellate court reversed. Maynard & Brassfield, Rockford (Eugene E. Brassfield, Rockford, of counsel), for appellee. Co. (1965), 32111. McConnell, Kennedy, Quinn & Morris, of Peoria (Thomas B. Kennedy, Sr., and R. Michael Henderson, of counsel), for amicus curiae Illinois Retail Farm Equipment Association. v. (Ill.Rev.Stat.1973, ch. Maradean and Mark Peterson were struck by a 1965 used Chevrolet when walking home from school. *20 In Suvada v. White Motor Co. (1965), 32 Ill. 2d 612, we held that a manufacturer is liable under a theory of strict liability if the plaintiffs "prove that their injury or damage resulted from a condition of the product, that the condition was an unreasonably dangerous one and that the condition existed at the time it left the manufacturer's control." One of the challenged counts sought recovery for the wrongful death of the daughter, the other for the injuries to the son. See Peterson v. Lou Bachrodt Chevrolet Co., 76 Ill. 2d 353, 392 N.E.2d 1 (1979) (collateral source rule did not permit plaintiff to recover value of free medical services rendered by Shriner's Hospital for Crippled Children). It was alleged that the injuries and death were a direct and proximate result of the defective conditions. The complaint here alleged that the automobile, when it left defendant's control, was defective and not reasonably safe for driving and operation in that: (c.) A part of the cylinder braking system in the left rear wheel was missing at the time of the sale.'. 51150. If strict liability is imposed upon the facts alleged here, the used car dealer would in effect become an insurer against defects which had come into existence after the chain of distribution was completed, and while the product was under the control of one or more consumers. 336, 322 A.2d 440.) In this suit Plaintiff brought this action against defendant, Lou Bachrodt Chevrolet Company … 444, 448, 392 N.E.2d 1, 5 (1979). It provides that new and used motor vehicle dealers are liable to purchasers for specified proportional shares of the cost of repairs of 'Power Train' components for a period of 30 days from the date of delivery. The majority city Realmuto v. Straub Motors, Inc. [61 Ill.2d 23] (1974), 65 N.J. 336, 322 A.2d 440, and by implication attempt to distinguish it on the ground that there is no allegation 'that the defects were created by the used car dealer.' Co. (1969), 42 Ill.2d 339, 247 N.E.2d 401, strict liability was imposed upon a wholesaler through whose warehouse the packaged product passed unopened. No reason presents itself for not applying the principle to a used car dealer who places in the stream of commerce a vehicle rendered unreasonably dangerous by reason of a defect discoverable upon reasonable inspection. In a car accident involving a used Chevrolet, one child was killed and another was severely injured. Contacting Justia or any attorney through this site, via web form, email, or otherwise, does not create an attorney-client relationship. I am aware of the argument made by defendant and amici curiae that many vehicles are sold "as is" and that the cost of repairs in some instances might exceed the value of the vehicle. 262L.) Maradean Peterson died on the day of the accident, and [61 Ill.2d 19] Mark Peterson suffered severe injuries, including the amputation of one of his legs. View Case; Cited Cases; Citing Case ; Citing Cases . Plaintiff's Prima Facie Case. Since someone who leases a car that he or she owns can be sued under a theory of strict liability, it is reasonable to hold the dealer of a used car accountable through similar logic. You can access the new platform at https://opencasebook.org. (42 Ill.2d 339, 344, 247 N.E.2d 401, 404.) Kahn v. James Burton Co., 5 Ill. 2d 614. This is the old version of the H2O platform and is now read-only. Dealers of used cars should not be held accountable to protect consumers against defects that were created by earlier owners of the car rather than in the chain of distribution. 2d 612, 618 - 19,210 N.E.2d 182. One of the basic grounds supporting the imposition of strict liability upon manufacturers is that losses should be borne by those "who have created the risk and reaped the profit by placing the product in the stream of commerce." In Peterson v. Lou Bachrodt Chevrolet Co., 61 Ill.2d 17, 329 N.E.2d 785 (1975), the court declined to apply the principle of strict products liability to a used car salesman, who had sold an allegedly defective automobile that had injured the plaintiff. (Suvada v. White Motor Co., 32 Ill. 2d 612, 619.) have represented clients in landmark cases such as Durham v. Rockford Mutual Insurance Company, which is occasionally cited in case decisions throughout Illinois, and Peterson v. Lou Bachrodt Chevrolet Co., which is still discussed in law schools nationwide and is available as an audio case file. Nor is there any allegation that the defects were created by the used car dealer. In Dunham v. Vaughan & Bushnell Mfg. We decline to do so. [61 Ill.2d 18] Reno, Zahm, Folgate, Skolrood, Lindberg & Powell, Rockford (Robert K. Skolrood, Rockford, of counsel), for appellant. Lou Bachrodt Chevrolet Co., 76 Ill.2d 353, 362-63, 29 Ill.Dec. These pleadings present no such issues, and assuming, Arguendo, that in some future case they will arise, there is precedent for weighing the cost of remedying the dangerous condition against the nature and extent of the risk which it creates. MR. JUSTICE SCHAEFER delivered the opinion of the court: On September 3, 1971, Maradean Peterson, age 11, and her brother, Mark Peterson, age 8, were struck by an automobile while they were walking home from school. The plaintiffs now ask that the same liability be imposed upon a defendant who is outside of the original producing and marketing chain. James A. Peterson, administrator of the estate of Maradean Peterson, and Mark Peterson, by James A. Peterson, his father and next friend, brought this action against the driver of the used car, its owners, and the defendant involved in the appeal, Lou Bachrodt Chevrolet Company. The dealer's share is 50% If the vehicle is not more than 2 years old, 25% If the vehicle is more than 2 but less than 3 years old, 10% If the vehicle is more than 3 but less than 4 years old. In Galluccio v. Hertz Corp., 1 Ill. App.3d 272, appeal denied, 49 Ill. 2d 575, the appellate court held strict liability applicable to the lessor of a motor vehicle. of Supreme Court of Illinois opinions. (42 Ill. 2d 339, 344.) 444 (1979). Plaintiffs Maradean Peterson and Mark Peterson, ages 11 and 8, were struck by an automobile while walking home from school. The majority cite Realmuto v. Straub Motors, Inc. *23 (1974), 65 N. J. Relevant Facts. After the trial court dismissed this part of the case, the estate of the children appealed and was successful in the state appellate court. Brian A. Forgue, Torts - Peterson v. Lou Bachrodt Chevrolet Co. Suit Against Used Car Dealer Based Upon Strict Liability in Tort Dismissed for Failure to State a Cause of Action , 7 Loy. Maradean Peterson died on the day of the accident, and Mark Peterson suffered severe injuries, including the amputation of one of his legs.… Because jurors do not need “specialized knowledge in engineering or to perform scientific calculations to estimate the speed of an automobile.” Watkins v. Schmitt, 172 Ill.2d 193 (1996). There is no allegation that the defects existed when the product left the control of the manufacturer. Plaintiff's daughter was killed and his son was seriously injured in an accident allegedly caused by a defective braking system in a used car sold by defendant to a third party. 444, 448, 392 N.E.2d 1, 5 (1979)).” [e.s., c.o.] I dissent. (See Realmuto v. Straub Motors, Inc. (1974), 65 N. J. This is the old version of the H2O platform and is now read-only. Co. (1969), 42 Ill. 2d 339, strict liability was imposed upon a wholesaler through whose warehouse the packaged product passed unopened. On September 3, 1971, Maradean Peterson, age 11, and her brother, Mark Peterson, age 8, were struck by an automobile while they were walking home from school. 61 Ill.2d 17, 329 N.E.2d 785 . The dealer's share is 50% if the vehicle is not more than 2 years old, 25% if the vehicle is more than 2 but less than 3 years old, 10% if the vehicle is more than 3 but less than 4 years old. 2d 256, 262-263, 391 P.2d 168, 171, 37 Cal. Appellate court reversed; circuit court affirmed. James A. PETERSON, Administrator of the Estate of Maradean Peterson, a Deceased minor, and Mark Peterson, a minor, by James A. Peterson, his father and next friend, Plaintiffs-Appellants, v. LOU BACKRODT CHEVROLET CO., an Illinois Corporation, Defendant-Appellee. Peterson v. Lou Bachrodt Chevrolet Co., 76 Ill.2d 353 (1979). The dealer is not liable for any part of the cost of repairs if the motor vehicle is more than 4 years old. ... (Quoting from Peterson v. Lou Bachrodt Chevrolet Co., 76 Ill.2d 353, 362-63, 29 Ill.Dec. LOU BACHRODT CHEVROLET COMPANY, Appellant. JAMES A. PETERSON, Adm'r, et al., Appellees, It may well be that a heavy responsibility should be imposed upon used car dealers for the safety of the cars they sell. *18 Reno, Zahm, Folgate, Skolrood, Lindberg & Powell, of Rockford (Robert K. Skolrood, of counsel), for appellant. 16A[4] [b] [i], at 3-268 (1974).) ‎On September 3, 1971, Maradean Peterson, age 11, and her brother, Mark Peterson, age 8, were struck by an automobile while they were walking home from school. In Peterson, the medical provider was the philanthropical Shriner hospital, renowned for generously providing medical care for children free of charge to the family. (Peterson v. Lou Bachrodt Chevrolet Co. (1975), 61 Ill.2d 17.) 156 BRIGHAM YOUNG UNIVERSITY LAW REVIEW [I981 the overall question of whether to create an essentially new cause of action. Defendant seeks to expand Peterson beyond gratuitous medical care to the situation presented in the case at bar. 262L.) Peterson v. Lou Bachrodt Chevrolet Co., 61 Ill.2d 17, 329 N.E.2d 785 (1975) (seller of used car not strictly liable); Timm v. Indian Springs Recreation Ass'n, supra. Name. In Peterson, this court held that the plaintiff could not recover the value of free medical services provided by Shriners’ Hospital for Crippled Children because the policies James A. Peterson, administrator of the estate of Maradean Peterson, and Mark Peterson, by James A. Peterson, his father and next friend, brought this action against the driver of the used car, its owners, and the defendant involved in the appeal, Lou Bachrodt Chevrolet Company. Case opinion for FL District Court of Appeal THYSSENKRUPP ELEVATOR CORPORATION v. LASKY. But what if a plaintiff is billed for medical services in one amount, but the amount paid is less, due to a discount obtained by her insurance carrier? Maradean died, and Mark suffered severe injuries, including the amputation of one of his legs. The complaint here alleged that the automobile, when it left defendant's control, was defective and not reasonably safe for driving and operation in that: These defects would have been discovered upon reasonable inspection of the vehicle. This means you can view content but cannot create content. Peterson v. Lou Bachrodt Chevrolet Co.. Facts: Plaintiff, James A. Peterson, is administrator of the estates of his two children who were hit by a car while walking home from school. 304(a).) The dealership generally does not create those defects, so it is inappropriate to apply the usual version of a strict liability claim against manufacturers, wholesalers, and first-sale retailers. Disclaimer: Justia Annotations is a forum for attorneys to summarize, comment on, and analyze case law published on our site. I would affirm the judgment of the appellate court. 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