Lead Opinion
This is an appeal from a judgment for appellee rendered by the trial court notwithstanding the verdict (n.o.v.) in a products liability case. Appellant contends that she presented sufficient evidence to recover for an injury under either a theory of strict liability in tort or one of implied warranty of merchantability, and that the trial court, faced with a special verdict by the jury granting recovery on implied warranty, and denying recovery on strict liability, erred in granting the judgment n.o.v. for appellee. Appellee replies that, while the trial court erred in submitting the two theories to the jury (“since the actions for breach of implied warranty of merchantability and strict liability in tort are but two names for the same cause of action”), the court properly corrected its error by rendering judgment n.o.v. We conclude that the trial court erred in instructing the jury and that the court did not correct, but rather compounded, its error by substituting its own judgment for that of the jury in its grant of appellee’s motion for judgment
I.
Appellant, an attorney with the United States Department of Labor, brought this products liability action alleging that she sustained permanent back injuries as a result of defective ball casters which were designed, manufactured, and installed by appellee. Specifically, she contends that the ball casters on her office chair
Appellee moved for judgment notwithstanding the verdict or alternatively for a new trial. The trial court chose to grant the motion for judgment n.o.v. It held that a new trial was not warranted. It instead vacated the verdict as to appellant’s implied warranty of merchantability claim, concluding that since appellant had failed to present evidence of “privity,” the instruction which he had given with respect to the “contract-oriented” breach of warranty claim was superfluous and unwarranted. The court reasoned that since the theories of “tortious” breach of warranty and strict liability “are co-extensive and effectively identical,” its instruction on strict liability, and the jury’s verdict on the claim based on the theory of strict liability, disposed of the necessity for, as well as the claim based on, the tortious breach of implied warranty. While at first blush the trial court’s approach appears to be a judicially economical and innovative method of disposing of a superfluous instruction, as well as a superfluous verdict, it basically highlights the fact of inconsistent verdicts. It added complexity to what is already a confusing record of proceedings, and confusing assertions of claims, confusion which only a new beginning can remedy.
II.
One statement should be made at the outset about which there must be no confusion — the District of Columbia is a jurisdiction affording recovery for tortious injury to the ultimate consumer — whether sought under a theory of strict liability or implied warranty. Historically, there have been contractual antecedents in warranty liability; however, “ ‘[i]t is undisputed that the original tort form of action [in warranty] ... still survives to the present day, and may be everywhere maintained.’ ” Payne v. Soft Sheen Products, Inc.,
the attendant removal of both privity and negligence seemed but a cumulation of tendencies within sales and tort law clamoring for open recognition and synthesis. Warranty liability, no longer confined to sales transactions [and the requirement of “privity”], made its contribution to the process of merger by reminding courts that sellers of defective goods are, on principle, strictly accountable for injuries to remote parties anyhow, if only by indirection.
Kessler, Products Liability, 76 Yale L.J. 887, 898-99 (1967) (emphasis added); see Prosser, The Fall of the Citadel (Strict Liability to the Consumer), 50 Minn.L. Rev. 791, 800-805 (1965-66); 2 Frumer & Friedman Products Liability § 3.01[1] at
There is nothing in this Section which would prevent any court from treating the rule stated as a matter of “warranty” to the user or consumer. But if this is done, it should be recognized and understood that the “warranty” is a very different kind of warranty from those usually found in the sale of goods, and that it is not subject to the various contract rules which have grown up to surround such sales.
Payne, supra,
III.
The instant complaint was filed seeking recovery under counts presenting theories of strict liability, implied warranty, and negligence. No reference was made to the Uniform Commercial Code (see D.C.Code § 28:2-101 et seq.), although the implied
The first theory under which the plaintiff seeks to recover is the theory of strict liability in tort. In connection with that theory, you are instructed: that the law imposes liability upon a seller of a product that causes injury to another or his property due to a defect in the design of the product which makes the product unreasonably dangerous. It is not necessary for the plaintiff to show that the defendant acted unreasonably or negligently; rather, the focus is upon the product itself. A product is unreasonably dangerous when it is dangerous to an extent beyond which would be contemplated by the ordinary consumer who purchases the product. Thus, if you find that the product — in this case it was a caster — had a defect in its design which made the product unreasonably dangerous and that the design defect proximately caused injury to the plaintiff, then you should find, and your verdict should be, for the plaintiff.
The second theory under which plaintiff seeks to recover is the theory of implied warranty of merchantability. This is the second theory.
You are instructed that a person who regularly sells goods of the kind involved in this case is a merchant with respect to such goods. The law imposes upon a merchant a legal obligation concerning the fitness of the merchandise sold. This obligation is called an implied “warranty of merchantability.” Under this implied warranty, the goods must be at least of such quality as to be fit for the ordinary purposes for which such goods are used.
You are further instructed that in an action based upon breach of an implied warranty, it makes no difference whether or not the defendant was negligent. If you find that the defendant was a merchant with respect to the goods in question, and if you further find that the goods did not conform to the standard imposed by law, then the defendant breached the implied warranty and the plaintiff is entitled to a finding and a verdict for the plaintiff.
You’ve heard me talk about injury proximately caused by defect or unfitness and you’ve heard me speak of damages proximately caused by defect or the unfitness. Now here’s what we mean by proximate cause.
An injury or damage is proximately caused by a defective condition or unfitness of a product if it appears from the evidence, direct and circumstantial, that a defective condition did exist and played a substantial part in bringing about the injury or damage and that the injury or damage was either a direct result or a reasonably probable consequence of the defect or unfitness.
Now, if you find that the product, in this case the caster, was defective, or was not fit but that the defect or unfitness was not the proximate cause of the damages to the extent claimed by the plaintiff, then the plaintiff may recover only the portion of damages which did result proximately from the defect or unfitness.
A casual reading of this language supports what appellee concedes: that “since the two theories (i.e., strict liability and implied warranty of merchantability) represent but one tort, it was error to have given both instructions.” The trial court, in vacating the jury’s verdict on the second theory, recognized this principle but characterized the instruction with respect to the second theory as being not one of tort, but of
The trial court may have been right, therefore, in recognizing that its first instruction on strict liability “adequately” placed before the jury any claim as to tortious breach of warranty. It was wrong in concluding, “upon review of the record,” that its instruction on breach of warranty, which made no mention of privity of contract, did anything more than tell the jury it could impose tort liability on the defendant for putting into the stream of commerce a defective product, which defect caused injury to a human being.
There is no view of this case that can make these findings consistent, or that can restore, in the absence of a new trial, one of the two verdicts. The trial court, having given the instruction that erroneously infected both verdicts, could not cure the error by validating one and ruling, after the fact, that the other was superfluous.
The judgment is reversed and the case remanded for a new trial.
So ordered.
Notes
. The chair was new when placed in her office and had been in use for more than a year at the time of the injury,
. Given our conclusion that the trial court erred in giving instructions on two liability theories that are identical under our caselaw, we do not reach the question of the scope and applicability of § 28:2-318 (identical to U.C.C. § 2-318) which requires the contractual element of privity. This section is designed specifically to protect buyers (or third party beneficiaries who are "nonprivity parties” under the section and thus shielded from the defense of lack of privity if they are “natural personfs] who [are] in the family or household of the [seller’s] buyer). See 3 Anderson Uniform Commercial Code § 2-318:5 at 405 (3rd ed.1983). At the new trial, counsel for both parties should determine which theories they will advance and how they will advance them, whether in contract or tort or both.
. Plaintiffs pleadings identify the claims as (1) failure to warn, (2) breach of warranty for a particular purpose and (3) negligence.
. See Payne, supra,
This warranty liability was instead to be a form of strict liability: a plaintiff could recover if he established, first, that the product was defective, i.e., not reasonably fit for its intended purpose or not of merchantable quality; and second, that as a result of the defect, the product caused injury.
(Citing Picker X-Ray, supra,
. Contrary to the suggestion in the concurring opinion at page 357, Payne does not address the question of whether the phrase "unreasonably dangerous” is a part of a Restatement § 402A instruction; the issue was not before us and we did not purport to decide it. Nothing on the referenced pages of Payne, supra,
Concurrence Opinion
concurring:
Appellant Bowler filed a complaint alleging three counts: strict liability (the chair casters were “defective” and “unreasonably dangerous”); implied warranty (breach of implied warranty of the chair’s “fitness for its particular purpose”); and negligence.
I agree that we must reverse; Ms. Bowler is entitled to a new trial. The trial court correctly concluded that any tort-based implied warranty claim (if such an action still exists) will always be co-extensive with a strict tort liability claim, see supra note 3, and thus that the jury found against Ms. Bowler on any possible tort claim. Contrary to the trial court’s ruling, however, in this jurisdiction privity is not an element of the implied warranty of merchantability under the Uniform Commercial Code. See infra Part III.A. Accordingly, that theory of liability is available to Ms. Bowler on this record. This, however, does not mean that the verdict on implied warranty in Ms. Bowler’s favor should be reinstated. In this jurisdiction, the implied warranty standard of liability under § 28:2-314(2)(c) is intended to be the same as the tort standard under Restatement § 402A, despite radically different instructional language. See supra note 2. Because of inconsistent verdicts on the implied warranty and strict liability counts, therefore, we must vacate the judgment n.o.v. and remand for a new trial.
To reach this result, an analysis is required showing why the trial court erred in concluding that a privity requirement bars recovery under § 28:2-314(2)(c). Furthermore, proper resolution of the appeal requires an answer to the ultimate question, which the lead opinion does not address: how the trial court should instruct the jury on remand. I write separately to discuss these issues, as well as others necessary or useful along the way.
I.
For background in understanding the questions presented, it is useful to note the analysis in Gumbs v. International Harvester Inc.,
It is easy to discern why the jury in Gumbs, as well as the jury in this case, found no liability under § 402A but found for plaintiff-appellant under UCC § 2-314(2)(c): the language of the § 402A instruction (the product must be “defective” and “unreasonably dangerous”) suggests a more difficult standard of liability for a plaintiff to meet than does the language of the instruction applicable to § 2-314(2)(c) (the product must be unfit “for the ordinary purposes for which such goods are used”). See supra note 2. As the court in Gumbs put it, “the phrase ‘unreasonably dangerous’ can suggest a higher standard of defect” than the test applicable to the implied warranty of merchantability.
Gumbs did not reformulate the jury instructions to make them appear to reflect more clearly the same standard of liability. Indeed, the federal court stopped short (perhaps because a state law question was involved), declining even to address how the jury should be instructed on remand. Failing to require an election of remedies, the court therefore left open the possibility of the same irreconcilable result after a second trial. We confront that very problem here. Unlike the Gumbs court, we should deal with it directly.
In proceeding with thé inquiry, we have to answer four questions: (1) What is a “standard of liability,” and how is it related to the “theories of liability” embraced, respectively, by Restatement § 402A and § 28:2-314(2)(c)? (2) In the District of Columbia, are the standards of liability under § 402A and § 28:2-314(2)(c) intended to be different or the same? (3) On the record here, are both the implied warranty and strict liability theories, incorporating their respective standards of liability, available to plaintiff-appellant? (4) If so, on remand, how should the trial court deal with the problem created by the two standardized jury instructions, see supra note 2, that appear to suggest the standards of liability under § 402A and § 28:2-314(2)(c), respectively, are different?
II.
A “standard of liability,” in the context here, is the degree of defectiveness or unfitness of a product required for the imposition of liability. The standard of liability, therefore, is only one of a number of possible elements of liability (e.g., proximate cause, foreseeability) that must be combined with possible exclusions from coverage (e.g., disclaimer, privity) and with possible categories of damage (e.g., personal injury, property damage, economic loss), in order to define when recovery under each theory of liability is possible. We are not focusing, therefore, on the question wheth
It follows that the first substantive question presented — whether the standards of liability are different or the same under § 402A and § 28:2-314(2)(c), respectively— becomes relevant only when the trial record supports the claimed liability and damages under both theories, given all the elements and exclusions. If both theories apply but the standards are different, then there would appear to be no problem with submitting both theories of liability to the jury under instructions that make the differences clear. If, however, both theories apply and the standards under each are the same, then submission of more than one theory to the jury would be redundant, and the court would have to decide which instruction to give when the record supports submission of both. See, e.g., Hawkeye-Security Ins. Co. v. Ford Motor Co., 174 N.W.2d 672, 684-85 (Iowa 1970) (“[ordinarily strict liability in tort is in lieu of one or more of the implied warranty theories” and submission of both theories to jury “would be exceptional”).
A number of appellate courts have said the standards of liability for implied warranty and strict tort liability are the same, but these courts have spoken in contexts that differ from the litigation confronting us here. For example, they have held harmless the granting of summary judgment on one theory when the other was submitted to the jury, see McQuiston v. K-Mart Corp.,
In the District of Columbia, the law has evolved in a way that does not make clear how the law of implied warranty and strict tort liability interact. This court adopted the doctrine of implied warranty liability and eliminated the privity requirement in Picker X-Ray Corp. v. General Motors Corp.,
It has been said that the current doctrines of implied warranty and strict liability in tort are but two labels for the same legal right and remedy, as the governing principles are identical. This to a large extent is true. The differences between strict liability in tort and implied warranty, if any, are conceptual.
* * * * * *
Whether contract or tort, there is a liability imposed for injury caused by placing a defective product into the stream of commerce in the District of Columbia. For present purposes we are not required to adopt the theory of strict liability in tort with all its implications.
Id. at 808, 809 (footnotes omitted). We added that we were “not confronted with any conceptual problems which may arise from calling the action warranty or tort, e.g., the effect of a warranty disclaimer or the effect on a suit only for a commercial loss and not for personal injury or property damage.” Id. at 809 n. 8. As of the time of Cottom I, therefore, “[sjtrict liability in tort ha[d] been considered but never adopted in the District of Columbia.” J. Beasley, Products Liability and the Unreasonably Dangerous Requirement 323 (1981). See also Johns v. Cottom,
Several years after the Cottom cases, in Berman v. Watergate West, Inc.,
A year later in Fisher v. Sibley Memorial Hospital,
In Payne v. Soft Sheen Products, Inc.,
Interestingly, Berman purported to recognize adoption of strict tort liability in Cottom I, which employed merely a “ ‘defective’ ” product standard of liability. Berman,
As I see it, therefore, (1) this court has adopted the theory of strict tort liability under Restatement § 402A; (2) in doing so we intended to reflect the same standard of liability inherent in implied warranty theory; (3) implied warranty theory has been codified in § 28:2-314(2)(c); and (4) this jurisdiction therefore considers the standard of liability under § 402A and § 28:2-314(2)(c) to be the same.
Interestingly, however, none of the cases in the District of Columbia or in the other jurisdiction cited earlier has caused the courts to come to grips with the language of the instructions applicable to each supposedly identical standard of liability. See supra note 2. It is a case like Gumbs or the present one, where the jury received instructions under both theories, that compels an appellate court to focus not only on the standards of liability but also on the language of the respective instructions.
III.
Before the instructional issue becomes germane to a lawsuit, however, the trial court must determine whether both theories of liability (incorporating the same standard of liability) are available to a plaintiff on the facts of record. Despite having a “common core” of elements creating the same standard of liability,
In the first place, there is at least one practical difference applicable to the two theories of liability: the statute of limitations for § 402A is three years,
A.
As indicated earlier, in some jurisdictions UCC § 2-314 has been interpreted to incorporate a privity requirement, see 3 R. Anderson, Uniform Commeroial Code § 2-314:96 (1983) (and cases cited therein), whereas § 402A has none, see Restatement § 402A, Caveat 1; see also 2 American Law of Products Liability 3d § 16:52 (1987) (collecting cases). D.C.Code § 28:2-318 (1981) provides:
A seller’s warranty whether express or implied extends to any natural person who is in the family or household of his buyer or who is a guest in his home if it is reasonable to expect that such person may use, consume or be affected by the goods and who is injured in person by breach of the warranty. A seller may not exclude or limit the operation of this section.
The official UCC Comment makes clear, however, that although § 2-318 “expressly includes as beneficiaries within its provisions the family, household, and guests of the purchaser,” that list is not necessarily exclusive. See 3 R. Anderson, § 2-318:1. “Beyond this, the section is neutral and is not intended to enlarge or restrict the developing case law on whether the seller’s warranties, given to his buyer who resells, extend to other persons in the distributive chain.” Id. While the courts of any UCC jurisdiction are thus free to limit liability to the circle of privity expressly created by § 2-318, they are likewise free to extend or altogether eliminate the privity requirement.
Shortly before the effective date of the Uniform Commercial Code in this jurisdiction, we held that, “regardless of the lack of contractual privity, the implied warranty of fitness and merchantability runs to the ultimate consumer for whose use the article or personal property had been purchased.” Picker X-Ray Corp.,
Although there are no privity limitations on the chain of users of a defective product who may sue under § 402A or § 28:2-314(2)(c), there is another kind of privity question, commonly called a question of “vertical privity”: whether § 28:2-314(2)(c) affords relief against a remote manufacturer, since the warranty provisions under Article 2 of the UCC flow from the “seller.” See D.C.Code §§ 28:2-312 through 28:2-318 (1981); Kassab,
B.
Restatement § 402A does not permit a manufacturer or seller to disclaim strict liability, Restatement § 402A comment m, whereas the UCC does permit exclusion or modification of implied warranties if exclusionary or modifying language is used and there are appropriate opportunities to inspect the product. See D.C.Code § 28:2-316. These provisions, however, do not apply to sales of consumer goods unless particular defects are “noted conspicuously in writing at the time of sale.” D.C. Code § 28:2-316.1 (1989 Supp.).
C.
D.C.Code § 28: 2-715(2)(b) (1981) recognizes the availability of consequential damages for “injury to person or property proximately resulting from any breach of warranty.” Thus, both Restatement § 402A and the UCC warranty of merchantability, as interpreted in this jurisdiction, allow recovery for both personal injury and property damage. See Payne,
The caselaw divides over the recovery of economic losses. Damages based on insufficient product value or on loss of anticipated profits reasonably foreseeable by the seller may generally be recovered in suits alleging breach of implied warranty. See D.C.Code §§ 28:2-714(2), 28:2-715(2)(a); 4 R. Anderson, Uniform Commercial Code § 2-715: 24. But the states are divided over whether economic losses are recoverable in suits based on strict products liability. Compare Seely v. White Motor Co.,
IV.
On this record, plaintiff-appellant, Ms. Bowler, has available on remand both § 402A and § 28: 2-314(2)(c). Clearly, both are available for the personal injury alleged here (no economic loss is at issue), and there is no question of a disclaimer for implied warranties. There is no question, moreover, that appellant used the chair casters for “the ordinary purposes for which such goods are used.” See supra note 10. Nor are there “horizontal” or “vertical” privity bars in this jurisdiction; plaintiff-appellant, as the buyer’s employ
Therefore, we finally reach the issue of what instruction the jury should receive on remand. I have not found a ease in which a court has held that the standards of liability under § 402A and § 2-314(2)(c) are intended to be the same, and then focused on the possibility that the “unreasonably dangerous” language in a § 402A instruction suggests a more difficult standard for the plaintiff to meet than the instruction under § 2-314(2)(c) — and then decided what to do. There is caselaw development, however, showing that for reasons unrelated to comparisons with § 2-314(2)(c), some states have eliminated (or declined to adopt) the “unreasonably dangerous” language in their strict liability instructions under § 402A and now “explain the concept of defect in terms similar to the warranty theory of defect.” See Gumbs,
In Cronin v. J.B.E. Olson Corp.,
Several years later in Azzarello v. Black Bros. Co.,
A year later, also relying on Cronin, the Supreme Court of New Jersey followed California and Pennsylvania in rejecting “unreasonably dangerous” language. Suter v. San Angelo Foundry & Machine Co.,
While several states, therefore, have eliminated “unreasonably dangerous” from the jury instructions for strict tort liability under § 402A, resulting in an instruction virtually congruent with the one applicable to a breach of implied warranty, other states — as well as the District of Columbia — have not done so. As a result, in these latter jurisdictions liability under § 402A appears to be “narrower than the merchantability warranty liability” under UCC § 2-314(2)(c). 3 R. Anderson § 2-314:56. These states accordingly appear to have recognized a distinction between (1) strict liability limited to physical harm to person or property from an “unreasonably dangerous” defective condition and (2) a less restricted warranty liability applicable to so-called economic injury as well as to personal injury and property damage.
This division of the court, therefore, is not free to reconcile standard jury instructions 11-11 and 11-6, supra note 2, and thus to rule for appellant,
The question then becomes whether a plaintiff who asserts implied warranty and strict tort liability claims against a seller or manufacturer should be allowed to present those claims to the jury under more than one instruction. Understandably, a plaintiff on one set of facts may wish to sue on one or more of: an express guarantee, an express warranty, an implied warranty of merchantability, an implied warranty of fitness for a particular purpose, negligence, fraud, and strict tort liability. See 3 R. Anderson § 2-314:44. But when it is time to go to the jury, the court cannot properly instruct both on implied warranty of merchantability and on strict tort liability; at least as to these two theories incorporating the same standard of liability, an election must be made.
On remand, because both theories of liability are applicable but only one instruc
. Because of the language used in the complaint, it is clear appellant alleged strict liability based on the Restatement (Second) of Torts § 402A (1965) and a breach of implied warranty under the Uniform Commercial Code, D.C.Code § 28:2-315 (1981).
. See Standardized Civil Jury Instructions for the District of Columbia §§ 11 — 11 (for Restatement § 402A) ("product unreasonably dangerous”) and 11-6 (for UCC § 2-314) (goods unfit "for the ordinary purposes for which such goods are used”) (1981).
. The trial court was adverting here to Restatement (Second) of Torts § 402A common m, which states in part:
A number of courts, seeking a theoretical basis for the [strict] liability [in tort], have resorted to a "warranty," either running with the goods sold, by analogy to covenants running with the land, or made directly to the consumer without contract.... [W]arranty was in its origin a matter of tort liability, and it is generally agreed that a tort action will still lie for its breach.... There is nothing in this Section which would prevent any court from treating'the rule stated as a matter of "warranty" to the user or consumer. But if this is done, it should be recognized and understood that the "warranty” is a very different kind of warranty from those usually found in the sale of goods, and that it is not subject to the various contract rules which have grown up to surround such sales.
Accordingly, for jurisdictions adopting Restatement § 402A, any implied warranty in tort would be subsumed under the language of that provision, as the trial court indicated.
. In Gumbs, although the complaint alleged violations of Restatement § 402A and of UCC § 2-314, the plaintiff persuaded the trial court to instruct the jury as well on the theory of implied warranty of fitness for a particular purpose, pursuant to UCC § 2-315. Surprisingly, however, the trial court did not give three in
. This question of deciding whether one or two standards of liability are at issue is premised, of course, not only the applicability of two legal theories to the facts of record but, even more fundamentally, on an assumption that the jurisdiction recognizes both theories of liability. That is not always the case. Indeed, recognizing the substantial overlap, if not the congruency, of strict products liability in tort and the implied warranty of merchantability under the UCC — and considering that legislative adoption of the UCC arguably preempts judicial adoption of any different theory of strict liability — several jurisdictions have declined to adopt the tort theory when the UCC was in place. See, e.g., Swartz v. General Motors Corp.,
. Gumbs,
. D.C.Code § 12-301(8) (1981); see Dawson v. Eli Lilly and Co.,
.D.C.Code § 28:2-725(1) (1981); see abo id. at § 12-301 (actions governed by § 28:2-725 exempt from § 12-301 general statute of limitations provision); 5 R. Anderson. Uniform Commercial Code § 2-725:59 (1984) (and cases cited).
. Many other jurisdictions also no longer require vertical privity and thus permit recovery under UCC § 2-314(2)(c) against a remote manufacturer who was the initial seller. See Union Supply Co. v. Pust,
. I merely note another possible distinction between § 402A and § 28:2-314(2)(c) liability which this court has not addressed. If “goods are employed for a purpose other than 'the ordinary purposes for which such goods are used,’ ” a manufacturer may not be liable under § 28:2-314(2)(c), Nobility Homes of Texas, Inc.,
. Sometimes, however, this more “liberal" warranty standard is applicable in fewer instances because of exclusions not applicable under § 402A. See generally Nobility Homes of Texas, Inc.,
. Were we to recognize a distinction between the § 402A and § 28:2-314(2)(c) standards of liability, as appellant urges, we would have to reverse and remand for reinstatement of the verdict, for the jury’s findings of liability under the second but not the first would not be irreconcilable and, as discussed earlier, there is no privity requirement under § 28:2-314(2)(c) that would bar recovery under that provision.
