Duane KEITH, Plaintiff-Appellant, v. STOELTING, INC., Defendant-Appellee, 915 F.2d 996 (5th Cir. 1990). · Go Syfert
Duane KEITH, Plaintiff-Appellant, v. STOELTING, INC., Defendant-Appellee, 915 F.2d 996 (5th Cir. 1990). Cases Citing This Book View Copy Cite
33 citation events (16 in the last 25 years) across 10 distinct courts.
Strongest positive: JMF Medical, LLC v. Team Health, LLC (lamd, 2020-09-29)
Treatment trajectory · 1992 → 2026 · click a year to view as-of
1992 2009 2026
Top citers, strongest first. 26 distinct citers. How cited ↗
cited Cited as authority (rule) JMF Medical, LLC v. Team Health, LLC
M.D. La. · 2020 · confidence medium
Miller, Federal Practice and Procedure, § 1297 at 590 (1990); also see Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir.1990)).
discussed Cited as authority (rule) Dzielak v. Whirlpool Corp.
D.N.J. · 2014 · confidence medium
The Fifth Circuit has held that a plaintiff “has the burden to plead and prove compliance with this notice requirement .... ” Keith v. Stoelting, Inc., 915 F.2d 996, 998 (5th Cir.1990) (citing HOW Insurance Company v. Patriot Financial Services of Texas, Inc., 786 S.W.2d 583 , 537 (Tex.App.1990)) (holding that plaintiffs failure to allege compliance with the notice requirement is grounds for a determination that plaintiff failed to state action under the DTPA).
discussed Cited as authority (rule) United States Ex Rel. Smart v. Christus Health
S.D. Tex. · 2009 · confidence medium
The “circumstances” that must be pled with particularity are the “time, place and contents of the alleged misrepresentation, as well as the identity of the person making them.” Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir.1990) (quoting 5A Wright & Miller, Federal Practice and Procedure § 1297).
discussed Cited as authority (rule) ABC Arbitrage Group v. Tchuruk
5th Cir. · 2002 · confidence medium
Kowal v. MCI Communications Corp., 16 F.3d 1271 , 1279 n. 3 (D.C.Cir.1994); Neubronner v. Milken, 6 F.3d 666, 672 (9th Cir.1993).”). .15 U.S.C. § 78u-4(b)(3)(A); Nathenson, 267 F.3d at 412-13 ; Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir.1990) (per curiam). .
discussed Cited as authority (rule) In Re: Alcatel
5th Cir. · 2002 · confidence medium
Kowal v. MCI Communications Corp., 16 F.3d 1271 , 1279 n. 3 (D.C.Cir. 1994); Neubronner v. Milken, 6 F.3d 666, 672 (9th Cir.1993)."). 68 15 U.S.C. § 78u-4(b)(3)(A); Nathenson, 267 F.3d at 412-13 ; Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir.1990) (per curiam). 69 Comsat Corp. v. FCC, 250 F.3d 931 , 936 n. 5 (5th Cir.2001). 70 See 5 Charles Alan Wright & Arthur R.
discussed Cited as authority (rule) Hou-Tex, Inc. v. Landmark Graphics
Tex. App. · 2000 · confidence medium
However, at least one federal case, in interpreting Texas law, has held that “Texas will not extend horizontal privity to economic loss cases.... ” Keith v. Stoelting, 915 F.2d 996, 999 (5 th Cir.1990) (where state employee sued polygraph manufacturer after he failed a polygraph test and lost his job).
cited Cited as authority (rule) Brown v. Coleman Investments, Inc.
M.D. La. · 1998 · confidence medium
Miller, Federal Practice and Procedure, § 1297 at 590 (1990); also see Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir.1990)). 49 .
cited Cited as authority (rule) Brown v. Coleman Investments, Inc.
M.D. La. · 1998 · confidence medium
Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir.1990)). 38 .
cited Cited as authority (rule) Petri v. Gatlin
N.D. Ill. · 1997 · confidence medium
E.g., Keith v. Stoelting, Inc., 915 F.2d 996, 998, 1000 (5th Cir.1990).
cited Cited as authority (rule) Bass v. Hendrix
S.D. Tex. · 1996 · confidence medium
Keith v. Stoelting, Inc., 915 F.2d 996, 998 (5th Cir.1990); Dean v. Dean, 837 F.2d 1267, 1268 (5th Cir.1988); Transportation Ins.
discussed Cited as authority (rule) Petricca v. Simpson (2×) also: Cited "see, e.g."
D. Mass. · 1994 · confidence medium
“At a minimum, [Rule 9(b) ] requires that the Plaintiff allege the time, place and contents of the alleged misrepresentation, as well as the identity of the person making them.” Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir.1990); see also Hayduk v. Lanna, 775 F.2d 441, 444 (1st Cir.1985) (Rule 9 requires specificity with respect to time, pla.ce and content of an alleged false representation, but not circumstances or evidence from which fraudulent intent could be inferred).
cited Cited as authority (rule) Tel-Phonic Services, Inc. v. TBS Intern., Inc.
5th Cir. · 1992 · confidence medium
Wright & A. Miller, Federal Practice and Procedure § 1297, at 590 (1990); Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir.1990).
discussed Cited as authority (rule) Seco Nevada, Inc. v. John McMordie Patrick Crouch, and Joseph Praeger (2×) also: Cited "see"
9th Cir. · 1992 · confidence medium
Keith v. Stoelting, Inc., 915 F.2d 996, 999 (5th Cir.1990) (emphasis added), noted that "Texas courts have never allowed recovery for economic loss in personal injury cases ... to persons lacking horizontal privity." The court distinguished Nobility Homes, which involved vertical rather than horizontal privity.
cited Cited "see" Taboada v. State Farm Lloyds
S.D. Tex. · 2020 · signal: see · confidence high
Wright & A. Miller, Federal Practice and Procedure § 1297, at 590 (1990); see Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir. 1990).
cited Cited "see" Berge Helene Ltd. v. GE Oil & Gas, Inc.
S.D. Tex. · 2012 · signal: see · confidence high
See Keith v. Stoelting, Inc., 915 F.2d 996, 999 (5th Cir.1990). 45 Accordingly, the U.C.C. supplies no clear rule on whether a buyer in vertical privity may recover for economic loss.
cited Cited "see" Farooqi v. Carroll (In re Carroll)
Bankr. N.D. Tex. · 2011 · signal: see · confidence high
See generally Keith v. Stoelting, Inc., 915 F.2d 996 (5th Cir.1990); Tucker v. Nat’l Linen Serv.
discussed Cited "see" Scott v. Dorel Juvenile Group, Inc.
N.D. Tex. · 2011 · signal: see · confidence high
See Keith v. Stoelting, 915 F.2d 996, 999 (5th Cir.1990) (construing Texas law); United *673 States Pipe & Foundry Co. v. City of Waco, 130 Tex. 126 , 108 S.W.2d 432, 434 (Tex.), cert. denied, 302 U.S. 749 , 58 S.Ct. 266 , 82 L.Ed. 579 (1937); Lujan v. Tampo Mfg.
discussed Cited "see" Metro National Corp. v. Dunham-Bush, Inc.
S.D. Tex. · 1997 · signal: see · confidence high
See Keith v. Stoelting, Inc., 915 F.2d 996, 999 (5th Cir.1990) (citing Boelens v. Redman Homes, Inc., 748 F.2d 1058 (5th Cir.1984)). 60 .Expectation damages are defined as "the difference at the time and place of acceptance between the value of the goods accepted and the value they would have had if they had been as warranted.” Tex. Bus. & Com.Code § 2.714(b). 61 .Since the breach of warranty is Dunham-Bush’s provision to Metro of defectively designed compressors as well as the independent breach of failure to honor the replacement obligation when requested, expectation damages in this ca…
cited Cited "see" Schaeffer v. Ascension College, Inc.
M.D. La. · 1997 · signal: see · confidence high
Wright & A. Miller, Federal Practice and Procedure, § 1297 at 590 (1990); see Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir.1990)). 33 .
cited Cited "see" Tel-Phonic Services, Inc., William Kirk, and John Bowen v. Tbs International, Inc. A/K/A Dy-Con, International, Inc. And the Dispatch Printing Company
5th Cir. · 1992 · signal: see · confidence high
Wright & A. Miller, Federal Practice and Procedure § 1297, at 590 (1990); see Keith v. Stoelting, Inc., 915 F.2d 996, 1000 (5th Cir.1990).
discussed Cited "see, e.g." Nexstar Broadcasting, Inc. v. Fidelity Communications Co.
Tex. App. · 2012 · signal: see also · confidence medium
Tex. Processed Plastics, Inc. v. Gray Enters., Inc., 592 S.W.2d 412, 415 (Tex.Civ.App.-Tyler 1979, no writ) (noting claim for breach of express warranty requires privity of contract); see also Keith v. Stoelting, Inc., 915 F.2d 996, 999 (5th Cir.1990).s Both Licensees and Fidelity agree that the four broadcast stations are not parties to the Agreement.
discussed Cited "see, e.g." Berge Helene Ltd. v. GE Oil & Gas, Inc.
S.D. Tex. · 2011 · signal: see also · confidence medium
Id.; see also Keith v. Stoelting, Inc., 915 F.2d 996, 999 (5th Cir. 1990) ("Vertical” privity includes parties up the distributive chain from the immediate seller); Hou-Tex, Inc. v. Landmark Graphics, 26 S.W.3d 103, 107-09 (Tex.App.-Houston [14th Dist.] 2000, no pet.) (citations omitted); 1 White & Summers, supra, § 11-5. .
discussed Cited "see, e.g." Dana Corporation v. Microtherm, Inc. and David E. Seitz, Individually
Tex. App. · 2010 · signal: see also · confidence medium
See Hou-Tex, 26 S.W.3d at 109 ; see also Keith v. Stoelting, Inc., 915 F.2d 996, 999 (5th Cir. 1990) (per curiam) (interpreting Texas law and holding, in a case where a state employee sued the polygraph manufacturer after he failed a polygraph test and lost his job, that "Texas will not extend horizontal privity to economic loss cases. . . .").
discussed Cited "see, e.g." Dana Corporation v. Microtherm, Inc. and David E. Seitz, Individually
Tex. App. · 2010 · signal: see also · confidence medium
See Hou-Tex , 26 S.W.3d at 109 ; see also Keith v. Stoelting, Inc. , 915 F.2d 996, 999 (5th Cir. 1990) (per curiam) (interpreting Texas law and holding, in a case where a state employee sued the polygraph manufacturer after he failed a polygraph test and lost his job, that "Texas will not extend horizontal privity to economic loss cases. . . .").
discussed Cited "see, e.g." Dana Corporation v. Microtherm, Inc. and David E. Seitz, Individually
Tex. App. · 2009 · signal: see also · confidence medium
See Hou-Tex , 26 S.W.3d at 109 ; see also Keith v. Stoelting, Inc. , 915 F.2d 996, 999 (5th Cir. 1990) (per curiam) (interpreting Texas law and holding, in a case where a state employee sued the polygraph manufacturer after he failed a polygraph test and lost his job, that "Texas will not extend horizontal privity to economic loss cases. . . .").
discussed Cited "see, e.g." Dana Corporation v. Microtherm, Inc. and David E. Seitz, Individually
Tex. App. · 2009 · signal: see also · confidence medium
See Hou-Tex, 26 S.W.3d at 109 ; see also Keith v. Stoelting, Inc., 915 F.2d 996, 999 (5th Cir. 1990) (per curiam) (interpreting Texas law and holding, in a case where a state employee sued the polygraph manufacturer after he failed a polygraph test and lost his job, that "Texas will not extend horizontal privity to economic loss cases. . . .").
Retrieving the full opinion text from the archive…
13 Ucc rep.serv.2d 125, prod.liab.rep.(cch)p 12,630 Duane Keith
v.
Stoelting, Inc.
90-5548.
Court of Appeals for the Fifth Circuit.
Oct 29, 1990.
915 F.2d 996
Earle Cobb, Jr., San Antonio, Tex., for plaintiff-appellant., Mark S. Helmke, Foster, Lewis, Langley, Gardner & Banack, Inc., San Antonio, Tex., for defendant-appellee.
Clark, Thornberry, Higginbotham.
Cited by 26 opinions  |  Published
[*998] PER CURIAM:

Duane Keith (Keith) appeals the dismissal of this action against Stoelting, Inc. for failure to state a claim. We affirm.

I.

Keith’s allegations were as follows. He was employed by the Texas Department of Public Safety (the Department). Prior to 1985 the Department purchased a polygraph machine manufactured by Stoelting. Stoelting advertised and represented that the polygraph would detect deception.

In April of 1985, the Department requested that Keith submit to a polygraph test with Stoelting’s machine. The machine showed that Keith did not answer truthfully, and Keith was terminated.

Keith based his claims on a violation of the Texas Deceptive Trade Practices-Consumer Protection Act, strict products liability, breach of warranty and negligence.

II.

We address each of the asserted causes of action.

A. Texas Deceptive Trade Practices Act

Keith does not specifically invoke the provisions of the Texas Deceptive Trade Practices-Consumer Protection Act (the DTPA), Tex.Bus. & Com.Code Ann. § 17.41 et seq. However, to give him the full benefit of our rule on liberal review of dismissals on the pleadings, we assume he asserted a cause of action under the DTPA. See Rankin v. City of Wichita Falls, 762 F.2d 444, 446 (5th Cir.1985).

A threshold requirement for a claim under the DTPA is that the plaintiff be a consumer. Eckman v. Centennial Savings Bank, 784 S.W.2d 672, 674 (Tex.1990). A consumer is an individual who seeks or acquires goods or services by purchase or lease. Tex.Bus. & Com.Code § 17.45(4). Keith admits that he is not a consumer, but contends that he need not be. Eckman answers this contention.

Before filing suit, a DTPA plaintiff must give written notice of his specific complaint and the amount of actual damages and expenses. Tex.Bus. & Com Code Ann. § 17.505(a). Plaintiff has the burden to plead and prove compliance with this notice requirement, and Keith failed to do so. How Insura,nee Company v. Patriot Financial Services of Texas, Inc., 786 S.W.2d 533, 537 (Tex.App.1990). Keith’s petition states no cause of action under the DTPA.

B. Strict Liability

Keith alleges a cause of action based on strict products liability as set out in § 402A of the Restatement (Second) of Torts. He alleges that the polygraph was defective, unsafe and unreasonably dangerous.

Stoelting correctly argues that Keith has no strict liability claim because he did not allege any physical harm. Texas courts have clearly held that a claim under § 402A requires that the product cause physical harm to the plaintiff or his property. Nobility Homes of Texas v. Shivers, 557 S.W.2d 77, 80 (Tex.1977); Ling, Oliver, O’Dwyer Electric Company, Inc. v. Ladd Tool Company, 702 S.W.2d 658, 660 (Tex.App.1985, writ refd n.r.e)

In addition, Stoelting contends that strict liability is inapplicable here because the doctrine does not apply where the allegedly defective product is intimately and inseparably connected with the providing of professional services. Nevauex v. Park Place Hospital, Inc., 656 S.W.2d 923, 926 (Tex.App.1983, writ refd n.r.e.); Easterly v. HSP of Texas, Inc., 772 S.W.2d 211, 213 (Tex.App.1989, no writ). This rule is most often applied to cases involving medical services. Stoelting contends that the skills of a trained polygraph examiner were an essential part of the testing procedure. We need not decide whether the examiner provided professional services because no physical harm is involved. Keith has failed to state a claim under strict products liability-

[*999] C. Breach of Warranty

Keith alleged that Stoelting breached express and implied warranties that its product was of merchantable quality and was safe and fit for its intended purpose when used under ordinary conditions and in an ordinary manner.

Breach of warranty is governed by the same rules which govern actions for breach of contract. Boelens v. Redman Homes, Inc., 748 F.2d 1058 (5th Cir.1984). Keith may not recover damages for mental anguish in a contract action. Dean v. Dean, 837 F.2d 1267 (5th Cir.1988). We, therefore, limit our review to Keith's claims which involve economic loss.

The primary issue under Keith’s breach of warranty claims is whether privity must exist between Stoelting and Keith. Texas courts have recognized two types of privity: vertical and horizontal. Vertical privity is “privity which includes all parties in the distribution chain from the initial supplier of the product to the ultimate purchaser.” Garcia v. Texas Instruments, 610 S.W.2d 456, 463 (Tex.1980). Horizontal privity “describes the relationship between the original supplier and a non-purchasing party who is affected by the product, such as the family of the ultimate purchaser or a bystander.” Id. at 463-64. Keith does not contend that he is a purchaser of the product so we need only examine whether Texas allows recovery to someone who is in horizontal privity with the manufacturer.

Keith’s claim under an express warranty theory clearly fails. Texas courts require direct privity between the plaintiff and the defendant in such cases. Texas Processed Plastics, Inc. v. Gray Enterprises, Inc., 592 S.W.2d 412 (Tex.Civ.App.1979 no writ).

Keith urges that Garcia supports recovery of damages for his injuries. In Garcia, the court held that an employee of the purchaser of sulfuric acid could bring a personal injury action against the supplier under the Texas U.C.C. implied warranty of merchantability. The court held that the U.C.C. applies to personal injuries and that someone with only horizontal privity could

recover. 610 S.W.2d 456. However, Texas courts have never allowed recovery for economic loss in personal injury cases such as Garcia to persons lacking horizontal privity. The economic loss cases relied on by Keith involve only vertical privity. See Nobility Homes, 557 S.W.2d 77 (addressing economic loss to a “consumer buyer,” a status Keith lacks). Texas courts have urged the exercise of caution in making further extensions of the privity requirements. Merit Drilling Co. v. Honish, 715 S.W.2d 87, 93 (Tex.App.1986 no writ). Because Texas law affords no precedent, we predict that Texas will not extend horizontal privity to economic loss cases such as Keith asserts here.

D. Negligence

Keith contends that Stoelting was negligent in advertising that its machine would detect deception and confirm truthfulness. He also asserts Stoelting was negligent in failing to warn that any polygraph machines would be unreliable in a certain percentage of tests.

For purposes of reviewing this dismissal, we will assume that Keith, although a career law enforcement officer, needed to be warned and that such a warning would have been effective even though he was required by his employer to submit to the examination.

Assuming also that a duty to warn did exist, that duty would be satisfied by the statutorily required presence of a “learned intermediary” to convey the necessary information to subjects of polygraph tests. Osburn v. Anchor Laboratories, 825 F.2d 908, 913 (5th Cir.1987). Given this licensing requirement for polygraph operators, Stoelting is bound to have had a “reasonable assurance” that any required warnings would reach anyone arguably “endangered” by use of the product. Aim v. Aluminum Company of America, 717 S.W.2d 588, 591 (Tex.1986).

Any duty to warn is met by the necessary presence of the polygraph examiner. Under general negligence rules, a person is under no legal duty to control the conduct[*1000] of another, Otis Engineering Corp. v. Clark, 668 S.W.2d 307 (Tex.1983), nor must one anticipate the negligent conduct of another, J.R. Beadel & Co. v. De la Garza, 690 S.W.2d 71 (Tex.App.1985, writ ref’d n.r.e.).

Stoelting was not negligent in failing to warn of a potential for unreliability in the polygraph machine and testing procedures.

III.

On appeal, Keith, apparently for the first time, contends that his pleadings state a claim for fraud. We need not decide whether Keith adequately developed this contention in the trial court because his pleadings show he failed to satisfy the requirements for pleading fraud.

Under Fed.R.Civ.P. 9(b), fraud is a “special matter,” and the circumstances constituting fraud must be stated with particularity. At a minimum, this requires that the plaintiff allege the time, place and contents of the alleged misrepresentation, as well as the identity of the person making them. See 5 C. Wright & A. Miller, Federal Practice and Procedure § 1297 at 403 (1979); 2A J. Moore and J. Lucas, Moore’s Federal Practice § 9.03 at 9-23-24 (2d ed. 1985).

Keith’s complaint does not contain the required particulars. Conclusory allegations of fraud are not sufficient to survive dismissal for failure to state a claim. Smith v. Ayres, 845 F.2d 1360, 1365 (5th Cir.1988).

IV.

The district court did not err in granting Stoelting’s motion to dismiss Keith’s complaint for failure to state a claim.

AFFIRMED.