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Case 3:16-Cv-06041 Document 1 Filed 10/19/16 Page 1 of 28 Case 3:16-cv-06041 Document 1 Filed 10/19/16 Page 1 of 28 1 FRANK M. PITRE (SBN 100077) ^[email protected] 2 ALISON CORDOVA (SBN 284942) 3 [email protected] COTCHETT, PITRE & McCARTHY, LLP 4 San Francisco Airport Office Center 840 Malcolm Road, Suite 200 5 Burlingame, CA 94010 Telephone: (650) 697-6000 6 Facsimile: (650) 697-0577 7 GENE J. STONEBARGER (SBN 209461) 8 [email protected] CRYSTAL L. KELLY (SBN 278084) 9 [email protected] 10 STONEBARGER LAW, APC 75 Iron Point Circle, Suite 145 11 Folsom, CA 95630 Telephone: (916) 235-7140 12 Facsimile: (916) 235-7141 13 Attorneysfor Plaintiffs 14 UNITED STATES DISTRICT COURT 15 FOR THE NORTHERN DISTRICT OF CALIFORNIA 16 BRANDON COVERT, an individual; CASE NO.: 17 JENNIFER COVERT, an individual; COMPLAINT FOR DAMAGES: 18 Plaintiffs, 19 (1) STRICT LIABILITY - DESIGN v. & MANUFACTURING DEFECT 20 SAMSUNG ELECTRONICS AMERICA, (2) NEGLIGENCE 21 INC., a New York Corporation; and 22 SAMSUNG ELECTRONICS CO., LTD., (3) NEGLIGENCE - BYSTANDER a Foreign Corporation, CLAIM 23 Defendants. (4) BREACH OF IMPLIED 24 WARRANTY 25 (5) BREACH OF EXPRESS 26 WARRANTY 27 JURY TRIAL DEMANDED 28 COMPLAINT FOR DAMAGES LAWOFFICES COTCHETr, PiTRE & McCarthy,LLP Case 3:16-cv-06041 Document 1 Filed 10/19/16 Page 2 of 28 1 TABLE OF CONTENTS 2 Page 3 L INTRODUCTION. 1 4 II. JURISDICTION AND VENUE 2 5 III. THE PARTIES 4 6 7 A. Plaintiffs 4 8 B. Defendants 5 9 C. Agency & Concertof Action 5 10 IV. FACTUAL BASIS FORTHE CLAIMS ASSERTED 6 11 A. The Explosion ofPlaintiff'sDefectiveGalaxy S6 Active 12 Smartphone 6 13 B. Samsung Galaxy Phones Use Lithium-Ion Batteries 7 14 C. The Samsung Galaxy S6 Active Uses the Same BatteryAs the Galaxy 15 Note7 9 16 D. Samsung Was Aware ofOverheating Problems With Galaxy Phones, ButInsteadofFixing the Root Problem, Samsung Merely Replaced 17 Individual Devices 10 18 E. Samsung Concealed the Problem and Marketed the Galaxy S6 19 Active as Indestructible and BetterThan Ever 17 20 V. CAUSES OF ACTION 19 21 FIRST CAUSE OF ACTION STRICT LIABILITY-DESIGN & MANUFACTURING DEFECT 19 22 23 SECOND CAUSE OF ACTION NEGLIGENCE 22 24 THIRD CAUSE OF ACTION 25 NEGLIGENCE - BYSTANDERCLAIM 22 26 FOURTH CAUSE OF ACTION 27 BREACH OF IMPLIED WARRANTY 23 28 LAWOFHCES COMPLAINT FOR DAMAGES COTCHETT, PiTRE & McCarthy,LLP Case 3:16-cv-06041 Document 1 Filed 10/19/16 Page 3 of 28 1 FIFTH CAUSE OFACTION BREACH OF EXPRESS WARRANTY 24 2 3 VI. PRAYER FORRELIEF 25 4 VII. JURY DEMAND 25 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 LAWOFFICES COMPLAINT FOR DAMAGES COTCHETT, PiTRE & McCarthy,LLP Case 3:16-cv-06041 Document 1 Filed 10/19/16 Page 4 of 28 1 Plaintiffs BRANDON COVERT ("BRANDON") and JENNIFER COVERT 2 ("JENNIFER") (collectively hereinafter, "PLAINTIFFS") bring this action, by and through 3 their attorneys, for personal injuries. PLAINTIFFS hereby complain ofthe Defendants, 4 SAMSUNG ELECTRONICS AMERICA, INC. and SAMSUNG ELECTRONICS CO., 5 LTD. (collectively hereinafter, "SAMSUNG" or "DEFENDANTS"), and each ofthem, as 6 follows: 7 I. INTRODUCTION 8 1. At approximately 2:00 a.m. on August 2, 2016, BRANDON was sound asleep 9 with his wife JENNIFER and their infant, seven month old daughter when a loud explosion, 10 resembling a gunshot, startled them awake. On their dresser, BRANDON'S Galaxy S6 Active 11 smartphone (the "S6 Active") was on fire, shooting out flames four to five inches high, and 12 quickly filling the room with smoke. Panicked and fearing for the safety ofhis wife and child, 13 BRANDON tried to smother the S6 Active with a shirt to extinguish the fire, but the fire and 14 smoke continued to billow and a foamy, acidic-like substance began spewing from the phone. 15 BRANDON had no other option but to grab the on-fire and blazing hot S6 Active, run to the 16 kitchen sink, and drench the phone with water to extinguish the fire. What remainedwas a 17 contorted pile of metal, plastic, and glass, along with BRANDON'S melted flesh. 18 19 20 21 22 23 24 25 26 27 Front of BRANDON'S Galaxy S6 Active smartphone following explosion. 28 COMPLAINT FOR DAMAGES LAW OFFICES COTCMETl",Prnii' & McCar-i'MY, LLP Case 3:16-cv-06041 Document 1 Filed 10/19/16 Page 5 of 28 1 2 3 4 5 6 7 8 9 10 Rear of BRANDON'S Galaxy S6 Active smartphone following explosion. 11 2. SAMSUNG'S directors, officers, and/or managing agents knew ofGalaxy phones 12 overheating, smoldering, catching on fire, and/or exploding prior to releasing the Galaxy 86 13 Active. Despite knowledge of the hazardto consumer safety, SAMSUNG failed to fix the 14 problem, recallthe phone, or alert consumers of the danger. Instead, SAMSUNGchose to 15 conceal the problem from the public andrelease new generations of various Galaxy models under 16 the guise that all problems were addressed andfixed with the new generation. SAMSUNG even 17 marketed the Galaxy 86 Active as extremely durable and indestructible, despite knowing the 18 foreseeable andpredictable riskthatthe phone may overheat, flame and destruct from the inside 19 presenting a risk of serious harm or injury to consumers. 20 3. As a direct and foreseeable consequence of the wrongful conduct, omissions and 21 concealment of safetyrisks by DEFENDANTS, and each of them, PLAINTIFFS sustained 22 serious physical and psychological injuries, as well as economic losses, as set forth below. 23 II. JURISDICTION AND VENUE 24 4. This Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1332(a)(3). 25 The matter in controversyexceeds the sum or value of $75,000, exclusive of interest and costs, 26 and is between citizens ofdifferent States and citizens or subjects ofa foreign state are additional 27 parties. The Court also has supplementaljurisdiction pursuant to 28 U.S.C. § 1367(a). 28 COMPLAINT FOR DAMAGES LAW OFFICES COTCMEIT, PlTRE & MCC^VllTIlY, LLP Case 3:16-cv-06041 Document 1 Filed 10/19/16 Page 6 of 28 1 5. This Court has personal jurisdiction over PLAINTIFFS because PLAINTIFFS 2 reside in California, and submit to the Court's jurisdiction. This Court has personal jurisdiction 3 over SAMSUNG because SAMSUNG has conducted and continues to conduct substantial 4 business in California, and has sufficient minimum contacts with California in that: (1) Samsung 5 Media Solutions Center America, a division ofSamsung Electronics America, Inc., is based out 6 ofMountain View, California', (2) Samsung Strategy and Innovation Center, a global 7 organization within Samsung's Device Solutions division, is headquartered in Menlo Park, 8 California', (3) Samsung Information Systems America is headquartered in San Jose, California', 9 (4) Samsung Semiconductor, Inc. is headquartered in San Jose, California', (5) Samsung Open 10 Innovation Center is located in Palo Alto, California', and (6) Samsung Electronics America, 11 Inc.'s printer product division isheadquartered inIrvine, California} 12 6. Venue is proper in this Court under 28 U.S.C. § 1391 because SAMSUNG 13 innovates, researches, develops,improves, and markets a substantial amount of phones in this 14 District. SAMSUNG "has been a presence inSilicon Valley for more than two decades."^ 15 SAMSUNG'S Media Solutions Center (a.k.a. Research and Development Center)^, which is 16 located in this District, "delivers innovative, connected experiences across Samsung's mobile and 17 digital ecosystem that enhance theexperience ofowning a Samsungproduct}"^ is"[cjomprised 18 19 ^ See Samsung, U.S. Divisions, available at: http://www.samsung.com/us/aboutsamsung/samsung_electronics /us_divisions/; 20 http://www.samsung.coni/ContactUs/ElectronicsAmerica/index.htm; 21 http://www.samsung.com/ContactUs/InformationSystemsAmerica/index.htm; Seealso Cannes, Liz, "Samsung Confirms Four New Bay Area Offices," Allthingsd.com(Dec. 29,2012 at 22 2:13PM)availableat: http://allthingsd.com/20121229/samsung-confirms-four-new-bay-area- offices/; "SamsungElectronics Announces New SiliconValleyR&D Center,"BusinessWire.com 23 (Sept. 19, 2012 at 9:00 AM) available at: http://www.businesswire.com/news/home/20120919005456/en/Samsung-Electronics-Announces- 24 Silicon-Valley-Center. 25 ^ "Samsung Electronics Announces New Silicon Valley R&D Center," BusinessWire.com (Sept. 19,2012 at 9:00 AM) available at: 26 http://www.businesswire.com/news/home/20120919005456/en/Samsung-Electronics-Announces- Silicon-Valley-Center. 27 ^ See Id. See Samsung, U.S. Divisions, available at: 28 http://www.samsung.com/us/aboutsamsung/samsung electronics /us_divisions/. COMPLAINT FOR DAMAGES LAWOFFICES COTCHETT, PITRE & McCarthy,LLP Case 3:16-cv-06041 Document 1 Filed 10/19/16 Page 7 of 28 1 oftwo six-story LEED Platinum designed office buildings totaling nearly 385,000 square feet, 2 and two parking structures," and "serves as an epicenter ofinnovation and is home to some of 3 the world's top talentf including "more than 250 doctorate recipients from some ofthe best 4 schools around the globe."^ According to a SAMSUNG press release, the "greatsuccesses" of the 5 labs housed at the Media Solutions Center "benefit Samsung's vast portfolio ofmobile, visual 6 display, home appliance, wearable and audio and stereo products."^ SAMSUNG also maintains 7 and operates a Strategy and Innovation headquarters "within Samsung's Device Solutions 8 division, with the core missions ofopen innovation in collaborationwith entrepreneurs and 9 strategic partners," within this District. Not to mention, SAMSUNG'S Information Systems 10 America and Semiconductor divisions are headquartered in this District, along with an Open 11 Irmovation Center.^ Therefore, a substantial part ofthe eventsand/oromissions allegedin this 12 complaint, giving rise to PLAINTIFFS' claims, occurred in, emanated fromand/orweredirected 13 from this District. Venue is alsoproperbecause DEFENDANTS are subjectto this District's 14 personal jurisdiction with respect to this action.
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