Armored Courier Company Not Strictly Liable for Injuries at Costco Shootout

October 1, 2002

Richard Newman of the firm's Orange County office represented a transportation company responsible for transporting currency for various retail establishments, including Costco. During a delivery at the Van Nuys Costco, the armed courier was held up at gunpoint by a man holding an AK47 assault weapon. The incident occurred near the main entrance of the store on a Sunday afternoon, while it was crowded with customers. The guard drew his weapon in self-defense and the gunman opened fire with his assault weapon, killing one customer and seriously injuring two others. Several customers claimed injury in the scramble to escape the gunfire.

Seven personal injury suits were filed against the transportation company and Costco as a result of this incident. Each complaint included a cause of action for strict liability based on ultra hazardous activity. Plaintiff's theory of the case was that having armed couriers exiting a crowded store carrying thousands of dollars in cash created a heightened risk for armed robbery and serious injuries to customers; and that the risk of serious injury was unavoidable in the event of an armed robbery and shootout.

On behalf of the transportation company, a motion for summary adjudication was filed on the grounds that such business activity was not ultra hazardous as a matter of law, so that strict liability could not be imposed on the transportation company. The Van Nuys Superior Court Judge agreed - and granted summary adjudication in favor of the transportation company.