Redfield v. Mead, Johnson & Company
Redfield v. Mead, Johnson & Company
Opinion of the Court
Plaintiff brought this action under the Uniform
This action was commenced on August 26, 1971. The second amended complaint alleged that between May, 1966, and the end of January, 1968, defendant manufactured and sold a contraceptive drug, and that plaintiff purchased and used that drug during the same period. Plaintiff alleged that, as a result of her use of the drug, she suffered personal injuries in February, 1968. The complaint further alleged that defendant impliedly warranted that the drug was safe for use as a contraceptive, and that plaintiff relied on the defendant’s skill and judgment, and upon its implied warranty of fitness, but that the drug was not safe and was not reasonably fit for plaintiff’s use as a contraceptive, and that defendant failed to furnish proper directions or warnings about the dangers of using the drug.
Actions for breach of implied warranties are governed by our Commercial Code. See OES 72.3140, 72.3150, 72.7140. The Code specifically provides as one of the buyer’s remedies for a breach of a contract of sale the recovery of damages for personal injuries
“72.7150 Buyer’s incidental and consequential damages. * * *
“(2) Consequential damages resulting from the seller’s breach include:
“(b) Injury to person or property proximately resulting from any breach of warranty.”
See, also, OES 72.3180.
The Uniform Commercial Code’s special four-year statute of limitations is contained in OES 72.7250, which reads in pertinent part as follows:
“(1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. * * *
“ (2) A cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach. A breach of warranty occurs when tender of delivery is made, except that where a warranty explicitly extends to future performance of the goods and discovery of the breach must await the time of such performance the cause of action accrues when the breach is or should have been discovered.”
Our general statute on limitations of actions is OES 12.010:
“Actions at law shall only be commenced within the periods prescribed in this chapter, after the cause of action shall have accrued, except where a different limitation is prescribed by statute. * * *” (Emphasis added.)
When the above statutory provisions are read together, the legislative intent is clear. The legislature has provided a cause of action for personal injuries for breach
In spite of the clarity of these provisions, defendant argues that the two-year tort statute should apply because this court has characterized product liability actions as sounding in tort. This argument misses the mark. The seller’s implied warranties have their genesis in the contract of sale. Where the legislature has provided for a right of action for breach of the warranties implied in such a contract, it does not matter whether that action would be characterized at common law as lying in tort or in contract. It is a statutory action for which a specific limitation period has been provided. We do not need to look outside the provisions of the Code for more precise definitions.
In some of our cases applying the principles of strict liability in tort, the pleadings were framed in traditional warranty terms. In Wights v. Staff Jennings, 241 Or 301, 405 P2d 624 (1965) the action was filed before the effective date of the Uniform Commercial Code. We held there that a non-privity purchaser may have a cause of action, based entirely upon tort principles, for injuries caused by a defective product. It was pointed out that the tort liability which was recognized in that case “is distinct from that imposed under the Uniform Sales Act * * * or the Uniform Commercial Code * * 241 Or at 310, note 14. Because of the evolving nature of the tort of strict liability, we have not always held plaintiffs to the strict terms of their pleadings. This has been
It has also been argued that application of the Code’s four-year limitation period would be undesirable in consumers’ actions for personal injury because the buyer’s cause of action under OPS 72.7250 will ordinarily accrue when the seller tenders delivery of the goods. It may be that the Code’s limitation statute could, in some cases, result in barring a plaintiff’s cause of action before any injury has occurred. This was the result in Mendel v. Pittsburgh Plate Glass Co., 25 NY2d 340, 253 NE2d 207, 305 NYS2d 490 (1969), a case which has been extensively discussed and criticized.
It is argued that the legislature could not have intended plaintiffs in product liability cases to have a choice between two different limitation periods, and that we should apply the tort statute of limitations as best fitted to the essential nature of an action for personal injuries for breach of warranty. We have not, however, found any evidence of the legislature’s intention to limit plaintiffs to a single theory of recovery.
Another line of cases, however, permits plaintiffs who have avadable two theories of recovery for a single wrong to choose that which results in the more beneficial limitation period. In Martin v. Reynolds Metals Co., 221 Or 86, 342 P2d 790 (1959) we applied the trespass limitation statute although an action for nuisance, governed by a shorter limitation period, would also have been available to the plaintiff. Wells
The legislature has not, so far as we are aware, taken any position on this question. It has, however, provided a limitation period specifically applicable to actions for breach of warranty, including personal injury actions. Regardless of our view of the “gravamen” or “substance” of an action for personal injuries caused by breach of warranty, we are not free to ignore this provision.
It has also been suggested that the legislative intent that the tort statute should apply may be found in the fact that when the legislature enacted the Uniform Commercial Code, it amended ORS 12.080, the general contract statute of limitations, to provide an exception for sales contract actions governed by ORS 72.7250, but did not similarly amend ORS 12.110, the general tort statute of limitation. We do not find this circumstance particularly significant. Prior to the enactment of the Code, this court had held that an action for personal injuries resulting from the breach of a sales warranty was governed by the contract statute of limitations. Wells v. Oldsmobile Co., supra, 147 Or 687. On the basis of the Wells decision, the legislature
Cases from other jurisdictions which have considered this problem are divided. Three cases which have refused to apply the Uniform Commercial Code statute of limitations involved a choice between the Code provision and a statute applying, by its terms, to all actions for personal injury or property damage. Tyler v. Street & Co., 322 FS 541 (ED Va 1971); Heavner v. Uniroyal, Inc., 118 NJ Super 116, 286 A2d 718 (1972); U. S. Fidelity & G. Co. v. Truck & Con. Equip. Co., 21 Ohio St 2d 244, 257 NE2d 380 (1970). These eases are distinguishable on the ground that a personal injury or property damage statute of the kind they involved is more specific than the Code’s general statute, applying to all actions on sales contracts. ORS 12.110 (1) is not so specific in its terms.
On the other hand, several courts of last resort have applied the Code’s statute of limitations in breach of warranty actions on the ground that the legislature has provided a statute specifically governing actions
Defendant also contends that the complaint does not state a cause of action for breach of warranty. It is argued that plaintiff did not adequately allege that the drug was not of merchantable quality, that there was no allegation of privity, and that plaintiff failed to allege that she had given defendant the required notice of the breach of warranty.
The complaint alleges that the drug was a contraceptive pill, that defendant knew that members of the public were purchasing the pill for contraceptive purposes, and that the drug “was unsafe and was not reasonably fit for plaintiff’s use as a contraceptive.” These are adequate allegations that the drug was unmerchantable, in that it was not fit for the ordinary purposes for which such goods are used. OES 72.3140 (2)(c).
On the question of privity, plaintiff points to her allegation that she relied upon defendant’s implied warranty of fitness for “the purpose for which said
Plaintiff concedes that her complaint is inadequate in that it does not allege that defendant was given notice of the alleged breach. ORS 72.6070 (3) provides:
“Where a tender has been accepted:
“(a) The buyer must within a reasonable time after he discovers or should have discovered any breach notify the seller of breach or be barred from any remedy; * *
The language of this section indicates that notice is an essential element of plaintiff’s case. It has been so held. See L. A. Green Seed Company of Arkansas v. Williams, 246 Ark 463, 438 SW2d 717, 719 (1969). Plaintiff has asked for leave to amend her complaint to include an allegation of notice. As the trial court sustained the demurrer on the basis of the statute of limitation, which we have held to be error, and not on the basis of other defects in the complaint, we believe plaintiff should be given an opportunity to amend in this particular.
The case is reversed and remanded with directions to the trial court to permit plaintiff to amend her complaint to add an allegation of notice of breach,
See, for discussions of Mendel and the statute of limitations problem, Dewey, Products Liability Without Privity: Contract Warranty or Tort, 45 St John’s L Rev 76, 80 (1970); Bischoff, Comments on Mendel, 45 St John’s L Rev 71 (1970); Siegel, Procedure Catches Up—And Makes Trouble, 45 St John’s L Rev 63 (1970); Note, 39 Fordham L Rev 152 (1970); Note, 11 Bost Coll Ind & Comm L Rev 1038, 1044-1045 (1970).
“* * * When Goldberg [Goldberg v. Kollsman Instrument Corp., 12 NY2d 432, 191 NE2d 81, 240 NYS2d 592 (1963)] was
Mendel was not governed by the Uniform Commercial Code. The court applied the general contract statute of limitation, and indicated that the Code’s' four-year statute would govern in cases involving sales which took place after the Code’s effective date.
“An action ** * * for any injury to the person or rights of another, not arising on contract, and not especially enumerated in this chapter, shall be commenced within two years; * * (Emphasis added.)
Plaintiff relies on this allegation as adequate to allege a direct sale by defendant to plaintiff. Therefore, this case does not require us to consider whether the protection of the Code’s warranty provisions will be extended to other persons in the distributive chain.
Concurring Opinion
specially concurring.
I concur in the majority opinion.
The reason for the problem is historical. Courts extended the basis for liability in products liability eases beyond negligence. In making the extension they borrowed the concept and terminology of “implied warranty” from the law of sales in order to keep within known legal remedies. Stonebrink v. Highland Motors, 171 Or 415, 423-426, 137 P2d 986 (1943). This, however, created new problems because implied warranty in the law of sales had some impedimenta which were regarded as ill-suited to a remedy for personal injuries. The requirement of privity and the necessity of notice of breach were two such impedimenta. The courts eventually freed the remedy of these contractual incidents by evolving the tort of strict liability. Wights v. Staff Jennings, 241 Or 301, 405 P2d 624 (1965); Heaton v. Ford Motor Co., 248 Or 467, 435 P2d 806 (1967).
At the same time that the tort of strict liability was evolving from the contractual remedy of implied warranty, the drafters of the Uniform Commercial Code were slightly enlarging the implied warranty remedy for personal injuries.
In Markle v. Mulholland’s, Inc., 265 Or 259, 509 P2d 529 (1973), the majority of this court recognized the existence of two separate remedies, one, strict liability in tort, and the other, implied warranty, provided by the Uniform Commercial Code. When the Uniform Commercial Code remedy is sought it logic
Dissenting Opinion
dissenting.
The majority opinion recognizes that in our most recent eases we have held that where an action can be brought either in tort or in contract the applicable statute of limitations is to be determined on the basis of the predominant characteristic of the action. Thus in Bales for Food v. Poole, 246 Or 253, 424 P2d 892 (1967), we were called upon to decide whether an action for damages resulting from an engineer’s failure to provide for parldng facilities in designing a shopping center was governed by the two-year statute of limitations covering actions for negligent conduct, or the six-year statute limiting actions for breach of contract. We held that since the failure to exercise care was the “substance of the action,” the tort rather than the contract limitation period was applicable. While we noted a need for change in the law relating to the limitation of actions, the import of Bales is that the túne within which actions must be commenced cannot depend upon the form in which the action is brought.
The majority opinion refers to earlier cases such as Harper v. Interstate Brewery Co., 168 Or 26, 120 P2d 757 (1942); Wells v. Oldsmobile Co., 147 Or 687, 35 P2d 232 (1934); Sevier v. Mitchell, 72 Or 483, 142 P 780 (1914), which the court apparently regards as inconsistent with Bales. To the extent that those eases are inconsistent, I would have thought them overruled.
At any rate, the majority would distinguish Bales for Food and similar cases on the ground that a specific statute was not involved in those cases,
We have made it clear enough in our previous cases that a cause of action for personal injuries arising from a breach of the implied warranty of merchantabdity is in tort rather than in contract. In Wights v. Staff Jennings, 241 Or 301, 305, 405 P2d 624 (1965), we said:
“The word ‘warranty,’ with its connotation of contract has tended to obscure the fact that the liabdity imposed upon the seller for harm resulting from defective goods sold by him may rest entirely upon principles of tort law. Courts which see this have discarded the language of warranty and have described the seller’s obligation to furnish goods of merchantable quality in terms of the tort principle of strict liabdity.”①
The strict liabdity in tort which courts have imposed upon the seller of goods has been applied not only
The majority contends that the essential nature of an action for personal injuries cannot be the basis for selecting the appropriate limitation period because “the legislative intent is clear” that ORS 72.7250 should govern.
When the Code was enacted in Oregon, amendments and repealers of other statutes were also enacted in order that such statutes would be harmonized with Code provisions. This was in lieu of the general repealer provision recommended by the National Conference of Commissioners on Uniform State Laws and the American Law Institute. It is significant in this regard that whereas ORS 12.080, the statute of limitations for contract actions, was amended to apply “except as otherwise provided in section 72.7250,” no similar amendment was made to ORS 12.110, the stat
Moreover, the application of OKS 12.110 to personal injury actions brought under the Code does not affront the purpose and policy underlying OKS 72.7250. The purpose of OKS 72.7250, as described in the comment thereto, is to provide a “uniform statute of limitations for sales contracts” which is compatible with “the normal commercial record keeping period” of business concerns. This court has taken the position that the enactment of the Code was not intended to preclude us from providing a remedy for personal injuries resulting from defective products under the theory of strict tort liability set out in Section 402A of the Kestatement (Second) of Torts. It would seem without question that an action brought on the theory of Section 402A would be governed by the two-year statute of limitations prescribed by OKS 12.110. But whereas an action under Section 72.7250 of the Uniform Commercial Code accrues “when tender of delivery is made,” an action under OKS 12.110 accrues when plaintiff discovers his injury. I assume that the
The majority concedes that under their interpretation of OES 72.7250, because a cause of action accrues when the seller tenders delivery of the goods, a plaintiff may be barred even before he is injured. This was the result reached in Mendel v. Pittsburg Plate Glass Co., 25 NY2d 340, 305 NYS2d 490, 253 NE2d 207, 211 (1969). In a dissenting opinion Justice Breitel expressed the view that “it is all but unthinkable that a person should be time-barred from prosecuting a cause of action before he ever had one.” We have expressed the same view in a different context. In Berry v. Branner, 245 Or 307, 312, 421 P2d 996 (1966), we said:
“* * * To say that a cause of action accrues to a person when she may maintain an action thereon and, at the same time, that it accrues before she has or can reasonably be expected to have knowledge of any wrong inflicted upon her is patently inconsistent and unrealistic. She cannot maintain an action before she knows she has one. To say to one who has been wronged, ‘You had a remedy, but before the wrong was ascertainable to you, the law stripped you of your remedy,’ makes a mockery of the law.”
The majority is not distressed by the fact that
As I stated previously, an action brought on the theory of Section 402A would undoubtedly be governed by the two-year statute of limitations prescribed by OES 12.110. In holding that an action brought under the commercial code for breach of an implied warranty of merchantability is barred four years after tender of delivery, the majority is saying, in effect, that the legislature intended to provide two different periods of limitation for a product causing personal injury, depending upon whether plaintiff decided to bring Ms action under the theory of Section 402 A or tinder the Code. It does not seem reasonable to assume that the availability of such a choice would have been countenanced by the legislature.
In support of its holding the majority points to
“* * * Often, appellate courts have approved and authorized charges on both theories. Indeed a charge to the jury in a product liability case is often a conglomerate of three theories—negligence, implied warranty and strict liability in tort. Such charges are often unintelligible even to a sophisticated lawyer unless he has specialized on this subject, and certainly they are so to a lay jury. Our supreme courts should arrive at a theory of recovery to the exclusion of all others. Trial judges cannot under the present state of the law be criticized for being unable to submit a product liability case to a jury in a satisfactory manner. This situation emphasizes the fact that lack of efficiency in the administration of justice is often due to the complexities and ambiguities of the substantive law rather than to either court organization or court procedures. The fact that litigants, especially plaintiffs, want as a matter of tactics to employ ail three theories is not at all decisive.” Keeton, Product Liability and The Meaning of Defect, 5 St. Mary’s L J 30, 36 (1973).
I expressed a similar view in a specially concurring opinion in Maride v. Mulholland’s, Inc., supra. Since this court has seen fit to fashion its own theory of strict liability (Section 402A), it should treat it as the exclusive theory under which actions are brought for personal injuries resulting from defective products.
It is my opinion that since our legislature has previously singled out personal injury actions as deserving of a particular limitation period, where the real basis of a claim is injury to the person that statute should apply. I would confine the Code limitation period to the usual contractual actions for the recovery of economic losses such as loss of profits, loss of bargain and the like, and would exclude from its coverage actions for personal injuries.
For the foregoing reasons, I respectfully dissent.
McGrath v. White Motor Corp., 258 Or 583, 593, 484 P2d 838 (1971); Heaton v. Ford Motor Co., 248 Or 467, 470, 435 P2d 806 (1967).
The majority finds this evidence of legislative intent unpersuasive because twenty-seven years prior to the enactment of the Code this court held that an action for personal injuries resulting from the breach of a sales warranty was governed by the contract statute of limitations. Wells v. Oldsmobile Co., 147 Or 687, 35 P2d 232 (1934). The opinion in that case pointed out that warranty actions may sound either in tort or in contract. The court concluded that because an express rather than implied warranty was at issue, the contract limitation period would apply. Even if the legislature was aware of Wells when it enacted the Code, a fair reading of that decision could not support the conclusion that in every case warranty actions would be governed by the general contract statute.
Reference
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- REDFIELD, Appellant, v. MEAD, JOHNSON & COMPANY, Respondent
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