Surprise Headline - Federal Appeals Court sides with injured plaintiff in Costco Spilled Smoothie case. - Mark P. Loftus

September 26, 2025

In a rather surprising development, the 7th Circuit Court of Appeals recently handed down a decision resurrecting a plaintiff’s negligence case against Costco. I know, from painful personal experience, that federal court judges are not particularly excited to see personal injury cases on their dockets. So any helpful injury cases out of a federal court merits some discussion.

In Cruz v. Costco the plaintiff, Reyna Cruz fell while shopping in a Costco Food Court. She filed a lawsuit against Costco alleging that it had failed to clean up a Smoothie that had been spilled on the floor. Costco moved to toss the case arguing that it did not have constructive notice of the spill, so a jury could not find it negligent. The trial judge agreed and booted the case. Ms. Cruz appealed.

The facts showed that Ms. Cruz fell at roughly 1:13 pm. Costco had the Food Court under video surveillance and there was video of the area in question from 12:45 pm(roughly 30 minutes before the incident) until 1:45 pm. For nearly 30 minutes prior to the plaintiff’s fall, the video showed customers in the area. The video did not show a smoothie spill or a customer purchasing a Smoothie.

At 1:09 pm the video showed a woman in the Food Court. The woman was pushing a shopping cart with her daughter in the cart. At 1:10 the woman bent over to pick up a red item that either she or her daughter dropped. It was unclear what the item was.

At 1:13, Cruz fell. A Costco manager immediately responded but did not recall seeing anything on the floor. Two other Costco employees were seen on the video wiping around the area where Cruz fell, one with a mop and the other using a cloth or rag. After the area was cleaned a “Wet Floor” sign was set up.

The Costco Manager created an Incident Report where he wrote the Cruz fell on a Smoothie that was dropped by a customer. He also noted there was a substance or liquid on the floor. Specifically he noted there were 5 drops of Smoothie on the floor.

Costco’s motion to have the case tossed argued that there was no evidence that would allow a jury to conclude that the Smoothie had been on the floor long enough to establish constructive notice – i.e. that Costco should have known. The trial court agreed and tossed the case. Ms. Cruz then appealed.

In the Appellate Opinion, the 7th Circuit noted the business owners can be liable for injuries from foreign substances on flooring – if the customer can establish the business owner had constructive notice – by proving that the condition existed for a sufficiently long time so that a reasonably careful business owner should have discovered it.

In examining the evidence the 7th Circuit went on to note the a jury could indeed have found that the Smoothie was on the floor long enough for Costco to have constructive notice. The Appellate Court first pointed to the Incident Report which acknowledged Smoothie droplets on the floor. Additionally, the video showed customers and employees pointing to an area on the floor – evidence of a spill. And Costco employees wiped the area up. The Court concluded there was sufficient evidence to create a jury question as to whether Cruz fell on Smoothie droplets.

The next issue was how long a jury could conclude the droplets were on the floor. The Appellate Court noted that the video demonstrated that for at least 28 minutes prior to her fall there had been no clean up of the droplets. Consequently, a reasonable jury could conclude that the droplets had been present for longer than 28 minutes. The Appellate Court noted that Cruz had indeed presented evidence 1) that there was Smoothie droplets on the floor and 2) those droplets were present for at least 28 minutes. The Opinion noted that a reasonable jury could indeed have found that Costco should have discovered the spill if it was there for 28 minute, and importantly, that Costco had constructive notice.

The 7th Circuit reversed the trial court’s ruling and held that Cruz could go to trial on her negligence claim.

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September 26, 2025
According to online reports, Tesla ignored a $60 million dollar settlement overture in the wrongful death case that ultimately resulted in a $242 million dollar jury verdict against the car maker. The lawsuit grew out of 2019 crash where a Tesla Model S with Autopilot engaged, plowed through a Florida intersection and crashed into a Chevy Tahoe. Neima Benavides Leon and her boyfriend, Dillon Angulo were standing near the Tahoe when the Tesla crashed into it. Leon was killed and Angulo suffered serious injuries. A lawsuit was filed against Tesla, asserting that although the Autopilot feature was engaged, the vehicle did not brake. Florida law permits a monetary demand to be issued before trial. If the defendant fails to accept the demand within 30 days it is considered rejected. If the plaintiff then goes to trial and secures a verdict 25% greater than the offer, the defendant is on the hook for plaintiff’s investigative expenses and attorneys’ fees. Tesla is appealing the jury verdict, citing “substantial errors of law and irregularities at trial.”.
Johnson's baby powder container, white bottle, blue text, red seal, 400g.
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This important ruling got kind of lost in the news cycle. A couple weeks ago, the United States Supreme Court refused to vacate a $2.2 billion dollar ovarian cancer verdict against Johnson & Johnson[“J & J”]. The verdict was originally returned by a Missouri jury in 2018 on behalf of 22 women. The original verdict was actually $4.7 billion but a Missouri Appellate Court reduced the award to $2 billion. Each of the women claimed that there was asbestos and asbestos-laced talc in J & J talcum powder products they used, and they developed ovarian cancer as a result. Asbestos is known to cause cancer. Talc, in its raw form is often found in close proximity to naturally occurring asbestos. When J & J mined talc, that talc sometimes contained asbestos. And that asbestos sometimes found its way into J & J personal hygiene products. [In 2019, J & J recalled 33,000 bottles of J & J products after FDA testing found asbestos in test samples]. J & J, has known of the risk of asbestos contamination in talc products since the 1970’s. Some 21,000 plus ovarian cancer cases are pending against J & J throughout the United States.
Movie poster for
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Reports today say that DuPont and the State of New Jersey have reached a $2 Billion dollar settlement arising out of DuPont’s release of “forever chemicals” into soil, wetlands and other areas in New Jersey – and then forgetting to clean up the mess they made. The settlement with DuPont is reportedly the largest environmental settlement ever obtained by a state. “Forever chemicals” – also known as PFAS(referring to per and polyfluoroalkyl substances) are man-made chemicals that are used in an extensive variety of products as they are both water and grease-resistant. The chemicals are linked to litany of health problems, including increased risk of certain cancers(kidney, testicular and breast) liver damage, thyroid issues and reproductive problems(such as decreased fertility, low birthweight and developmental problems). NJ.Com is reporting that one of the sites where DuPont created munitions created such significant contamination in the environment that over 300 homes required filters to prevent toxic chemicals from seeping into their homes. The settlement terms provide that DuPont will spend $875 millions cleaning up the contamination and set aside another $125 million to cover other damages that may arise. Additionally, DuPont will also set p a $1.2 billion funding source and reserve fund of $475 million to ensure that even if the company fails to make payments, or goes bankrupt, public funds will not be used. For a stark introduction into the nature of PFAS, check out Dark Waters, a compelling and criminally underrated movie based on the decades old fight waged by attorney Robert Bilott against DuPont for contaminating West Virginia rural communities.