Oregon Azaleas, Inc. v. Western Farm Service, Inc.
Oregon Azaleas, Inc. v. Western Farm Service, Inc.
Opinion of the Court
When plants grown by Oregon Azaleas, Inc. were damaged after it applied a product sold to it by Western Farm Service, Inc., this action was commenced. Western Farm appeals the grant of judgment against it, and Oregon Azaleas appeals the failure to grant it a larger judgment. We affirm in part, reverse in part, and remand.
In reaching our decision in this diversity action, we apply the law of the state of Oregon as we know or apprehend it to be. See Paulson v. City of San Diego, 294 F.3d 1124, 1128 (9th Cir. 2002) (en banc).
The district court did not err when it granted summary judgment in favor of Oregon Azaleas on its claim that Western Farm breached an express warranty to deliver a particular product when it delivered a different product.
Under Oregon law, the failure of Oregon Azaleas to discover the fact that it had received the wrong product would preclude its recovery of consequential damages if it was not reasonable for it “to use the goods without such inspection as would have revealed the defects.” Or.Rev.Stat. § 72.7150(2)(b) & cmt. 5; UCC § 2-715 cmt. 5. Because that unreasonable behavior would preclude a finding that the damage proximately resulted “from the breach of warranty,” id., the tort doctrine of comparative fault does not apply in this contract based area. See Indus. Contract Carriers, Inc. v. Pac. Diesel Power Co., 277 Or. 677, 681, 562 P.2d 164, 165 (1977) (negligence of buyer cuts off causation for breach of warranty); Markle v. Mulholland’s Inc., 265 Or. 259, 272-73, 509 P.2d 529, 535 (1973) (in UCC area one must distinguish contract from tort); id. at 273-74, 509 P.2d at 536 (O’Connell, C.J., concurring) (same); McGrath v. White Motor Corp., 258 Or. 583, 595, 484 P.2d 838, 844 (1971) (courts must distinguish strict liability, a tort concept, from warranty, a contract concept); Landers v. Safeway Stores, Inc., 172 Or. 116, 138-39,139 P.2d 788, 796 (1943) (negligence of buyer cuts off causation from breach of warranty); Gladhart v. Oregon Vineyard Supply Co., 164 Or.App. 438, 458-59 & n. 10, 994 P.2d 134, 146 & n.
AFFIRMED in part, REVERSED in part, and REMANDED for a retrial on the issue of damages. The parties shall bear their own costs on appeal.
This disposition is not appropriate for publication and may not be cited to or by the courts of this circuit except as provided by Ninth Circuit Rule 36-3.
. Nevertheless, we also agree with the district court that Oregon Azaleas did not present sufficient evidence to allow a determination that it relied on Western Farm to supply a product that was fit for the particular purpose for which Oregon Azaleas used the product in question. See Or.Rev.Stat. § 72.3150; Gary Coast Agency, Inc. v. Lawrey, 101 Or. 623, 629, 201 P. 214, 216 (1921).
. See Or.Rev.Stat. § 72.3160(1); Miller v. Hubbard-Wray Co., 52 Or.App. 897, 902-04, 630 P.2d 880, 883-84, amended by 53 Or.App. 531, 633 P.2d 1 (1981).
. See Or.Rev.Stat. § 71.2010(10); Seibel v. Layne & Bowler, Inc., 56 Or.App. 387, 391-92, 641 P.2d 668, 671 (1982); Miller, 52 Or.App. at 902, 630 P.2d at 883; cf. Duyck v. Northwest Chem. Corp., 94 Or.App. 111, 115—16, 764 P.2d 943, 945-46 (1988).
. Or.Rev.Stat. § 72.7150(2)(b).
. UCC § 2-715 cmt. 5.
. Incidentally, we see no abuse of discretion in the district court's rejection of Western Farm’s Federal Insecticide, Fungicide & Rodenticide Act evidence. See Fed.R.Evid. 402, 403; Janes v. Wal-Mart Stores, Inc., 279 F.3d 883, 886 (9th Cir. 2002). However, we do not preclude the district court from reconsidering that issue at any retrial.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.