Bloomberg Law
Nov. 17, 2020, 8:49 PM

Amazon Off Hook in State Farm Hoverboard-Fire Case at 9th Cir.

Martina Barash
Martina Barash
Reporter Inc. isn’t liable to insurer State Farm Fire & Casualty Co. for an Arizona house fire blamed on two hoverboards because it was outside the “enterprise” placing them in the stream of commerce, a divided Ninth Circuit panel affirmed Tuesday.

Amazon therefore isn’t a “seller” subject to strict liability under Arizona law for the web marketplace transactions, Judge N. Randy Smith and Ryan D. Nelson said in an unpublished, unsigned memorandum opinion.

Amazon’s benefit from each third-party transaction is small, and it wasn’t shown to use its market power to influence design and manufacturing decisions, the majority said in ...