Kent Holifield v. City Salvage, Inc.
230 So. 3d 736
Miss. Ct. App.2017Background
- In 2006 drywall manufactured in China was shipped, some cargo damaged; parts eventually resold by Gulf Coast to City Salvage, which sold drywall to contractor Ronny Hill used in Holifields’ home.
- Holifields discovered the drywall was Chinese (2011) and allege it emitted sulfur gases that corroded wiring/piping and caused health harms.
- Holifields sued Ronny Hill, City Salvage, and unknown manufacturers/distributors asserting products-liability, implied warranty, fraud, and consumer-protection claims.
- City Salvage moved for summary judgment under the Mississippi Products Liability Act (MPLA) “innocent seller” exemption, claiming no knowledge of chemical defects and no substantial control, alteration, or manufacture of the product.
- The circuit court granted summary judgment for City Salvage under Miss. Code Ann. § 11-1-63(h) and certified final judgment; the Holifields appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether City Salvage is liable under MPLA or protected as an "innocent seller" | Holifields: City Salvage knew (or should have disclosed) the drywall was salvaged/damaged and sold it as new | City Salvage: Had no actual/constructive knowledge of the chemical defects, made no design/manufacture/alteration, so MPLA immunity applies | Court: City Salvage is an innocent seller as a matter of law; summary judgment affirmed |
| Whether alleged sale of drywall as "salvaged" defeats innocent-seller exceptions (design/control, alteration, or knowledge) | Holifields: Selling salvaged/damaged drywall as new demonstrates conduct falling within exceptions | City Salvage: ‘‘Salvaged’’ status does not relate to the chemical defect that caused harm; no alteration or substantial control causing harm | Court: Alleged mislabeling/salvage status did not cause the harm; exceptions do not apply |
| Whether MPLA’s innocent-seller provision bars implied-warranty claims | Holifields: MPLA did not fully abrogate implied-warranty claims at time of filing; exemption shouldn’t apply to warranties | City Salvage: MPLA’s scope covers product-caused damages and applies to implied-warranty claims | Court: MPLA (and its innocent-seller provision) applies to implied-warranty claims; plaintiff cannot evade the exemption by relabeling claims |
| Whether additional discovery under Rule 56(f) was required | Holifields: More discovery could reveal evidence of City Salvage’s knowledge or other facts | City Salvage: No identified facts that discovery could uncover to defeat innocent-seller protection | Court: Holifields failed to identify discoverable facts that would affect entitlement to judgment; continuance denied |
Key Cases Cited
- Karpinsky v. Am. Nat’l Ins. Co., 109 So. 3d 84 (Miss. 2013) (standard of review and summary-judgment principles)
- McKee v. Bowers Window & Door Co., 64 So. 3d 926 (Miss. 2011) (prior discussion of MPLA and implied-warranty claims)
- Summers ex rel. Dawson v. St. Andrew’s Episcopal Sch., 759 So. 2d 1203 (Miss. 2000) (summary-judgment evidentiary standards)
- In re Chinese Manufactured Drywall Prods. Liab. Litig., 706 F. Supp. 2d 655 (E.D. La. 2010) (background on defects and harms associated with Chinese-manufactured drywall)