Service Provider or Seller?: Philadelphia Indemnity Ins. Co. aso Niat Realty v. Amazon
The United States District Court for the Eastern District of New York recently allowed a motion for summary judgement on behalf of Amazon.com in a product liability action. In the case, a defective blender purchased from Amazon caught fire in a restaurant causing significant damage. The insurer initiated a subrogation action seeking recovery from Amazon. Amazon moved for summary judgement, arguing they never took ownership of the blender and therefore was not liable. The court held that Amazon is a “service provider” and is not a seller subject to New York product liability law. The court also found that because Amazon did not manufacturer, sell, or distribute the blender they did not owe the insured a duty in regards to negligence or warranty claims.