Plaintiff is the guardian
ad litem
of Sophie S. Ewen, who was struck by a truck while crossing a street intersection. In addition to negligence actions against the trucking company and the driver, plaintiff brought a “product liability civil action,” ORS 30.900, against International Harvester
Defendant’s petition for review brings before this court a single issue, whether the following instruction was reversible error:
“A product is dangerously defective when it is in a condition unreasonably dangerous to the user.
“Unreasonably dangerous in this context means dangerous to an extent beyond that which would be contemplated by the ordinary purchaser of this type of product in the community. Purchaser and users is [sic] anyone who may reasonably be expected to be affected by the product, such as a pedestrian.”
Defendant objected at trial and argued on appeal that the expectations of a pedestrian are not a test of dangerousness to a “user or consumer” within the meaning of the product liability law. The Court of Appeals noted that in
Phillips v. Kimwood Machine Co.,
ORS 30.920 provides:
“(1) One who sells or leases any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm or damage to property caused by that condition, if:
“(a) The seller or lessor is engaged in the business of selling or leasing such a product; and
“(b) The product is expected to and does reach the user or consumer without substantial change in the condition in which it is sold or leased.
“(2) The rule stated in subsection (1) of this section shall apply, even though:
“(a) The seller or lessor has exercised all possible care in the preparation and sale or lease of the product; and
“(b) The user, consumer or injured party has not purchased or leased the product from or entered into any contractual relations with the seller or lessor.
“(3) It is the intent of the Legislative Assembly that the rule stated in subsections (1) and (2) of this section shall be construed in accordance with the Restatement (Second) of Torts sec. 402A, Comments a to m (1965). All references in these comments to sale, sell, selling or seller shall be construed to include lease, leases, leasing and lessor.
“(4) Nothing in this section shall be construed to limit the rights and liabilities of sellers and lessors under principles of common law negligence or under ORS chapter 72.”
As subsection (3) expressly states, the substantive formulas codified in subsections (1) and (2) are to be “construed in accordance with the Restatement (Second) of Torts sec. 402A, Comments atom (1965).” The present issue concerns Comment i, which reads in part:
“The article sold must be dangerous to an extent beyond that which would be contemplated by the ordinary consumer who purchases it, with the ordinary knowledge common to the community as to its characteristics.”
This is the standard for defects sometimes called the “consumer contemplation test.”
As a prediction of jury behavior, that may or may not be true. Trial by jury rests on the assumption that jurors will do their best to follow the law as explained by the court and that accurate instructions matter.
Cf. Sandford v. Chev. Div. Gen. Motors, 292
Or 590, 603-04,
ORS 30.920 was enacted in 1979. Its legislative history is reviewed at length in Vetri, Legislative Codification of Strict Products Liability Law in Oregon, 59 Or L Rev 363 (1981). In brief summary, the initiative for codifying civil liability for injuries from defective products came from business groups who were concerned about rising costs of liability insurance, which they attributed to the unpredictability of potential exposure in what was then a rapidly evolving branch of the law. In part, their sense of uncertainty concerned cases decided in other states which this court might or might not follow. Both they and their insurers desired to stabilize the rules of liability. Other witnesses and legislators, in turn, were concerned that legislation not reduce the financial protection under existing Oregon law for persons injured by dangerous products.
Both sides agreed that, if there was to be legislation at all, the starting point was the law stated in section 402A of the American Law Institute’s Restatement, Second, Torts with its interpretive Comments, although certain changes were necessary. Subsection 2(b), which eliminates any requirement of contractual privity between a plaintiff and a defendant, was expanded to refer expressly to an “injured party” other than a “user” or “consumer,” and Comment n, concerning contributory negligence and assumption of risk, was removed from the list of Comments incorporated by reference.
The question that concerns us in the present case is what significance the legislators attached to the consumer contemplation test stated in the Restatement’s Comment i, quoted above. Although Comment i, like the others, was not set out in the bill but was only incorporated by reference, its substance did not go unnoticed. In the Senate, the chief proponent of the proposal to codify Comments atom spoke of the confusion created by courts in “moving away from the provisions of 402A.” Senate Floor Debates on S. B. 422, 60th Or. Legis. Ass’y (May 29,1979), tape 22, side 1, at 809 (Sen. M. Ragsdale). Opponents warned that the bill would reverse or overrule any prior decisions that were contrary to Comments a through m. Witnesses before the House Judiciary Committee were more specific. A witness for the Portland Chamber of Commerce stated:
“The Oregon Supreme Court eroded away the rules when it refused to accept the consumer oriented rule anymore. Instead, it substituted what is called a seller oriented rule for the definition of unreasonably dangerous. The Supreme Court stated it is not what the consumerexpects that is important; it is what a reasonably prudent manufacturer would do, knowing of the potential danger. Some people think that is a much more liberal rule. Some consumers think it is a much more restrictive rule, and not the rule they would like.”
Minutes, House Committee on The Judiciary 9 (June 19,1979 - - Statement of Roland E. Banks, Jr.). Another witness, whom Professor Vetri characterizes as a plaintiffs’ attorney, thought that adoption of Comment i would make no great change in Oregon law because this court had treated the expectations of a reasonable consumer as equivalent to the standard of reasonable care for a manufacturer who markets a product knowing of its dangerous condition, and that acceptable instructions could be phrased in either or both forms. Id. at 30 (statement of Jim Griswold). No further committee report or floor discussion addressed these alternative views of the extent of change, if any, made by enacting Comment i. The case to which the foregoing testimony referred was Phillips v. Kimwood Machine Co., supra. In Phillips, Justice Holman wrote for the court:
“A dangerously defective article would be one which a reasonable person would not put into the stream of commerce if he had knowledge of its harmful character. The test, therefore, is whether the seller would be negligent if he sold the article knowing of the risk involved. Strict liability imposes what amounts to constructive knowledge of the condition of the product.
“On the surface such a test would seem to be different than the test of 2 Restatement (Second) of Torts § 402A, Comment i, of ‘dangerous to an extent beyond that which would be contemplated by the ordinary consumer who purchases it.’ This court has used this test in the past. * * *” (Footnotes omitted. Emphasis in original.)
“To elucidate this point further, we feel that the two standards are the same because a seller acting reasonably would be selling the same product which a reasonable consumer believes he is purchasing. That is to say, a manufacturer who would be negligent in marketing a given product, considering its risks, would necessarily be marketing a product which fell below the reasonable expectations of consumers who purchase it.”
Phillips v. Kimwood, supra,
Clearly the court regarded a focus on the “reasonableness” of marketing the product, knowing of its dangers, not as a departure from the Restatement’s Comment
i
but as
another way to explain it.
1
In the
In any event, the “consumer contemplation” test of
Comment
i
was brought to the attention of the legislature, and it was enacted. It follows at least that a jury in a product defect case should receive some instruction phrased so as to focus on what extent of risk an ordinary consumer would contemplate when purchasing a product with the knowledge of its characteristics common to the relevant community. We do not prescribe the specific form of jury instructions. As we said in
Ireland v. Mitchell,
An instruction based on Comment
i
was given in this case. The instruction left out some words that are used in the Comment and added other words that are not there. In referring to the extent of a product’s danger that “would be contemplated by the ordinary purchaser of this type of product in the community,” the instruction somewhat elliptically omitted reference to the consumer’s knowledge of the characteristics of the product, an element that appears in Comment
i;
but that is secondary to defendant’s criticism of the instruction. As we have said, the law does not oblige every judge to repeat the identical words of
We conclude that the statement is too broad. The word “consumer,” as used in Comment i, does not include everyone who might be affected by the product. If the reporters, advisers, consultants, and other experts who participate in the preparation of the Restatements want to invoke the general judgment of an ordinary reasonable person, they know how to say so. See, e.g., Restatement, Second, Torts §§ 11,12 (1965) (define “Reasonably Believes” and “Reason to Know”); § 283 (“Conduct of a Reasonable Man; The Standard”); and § 291 (“Unreasonableness; How Determined * * *”). ORS 30.920(2) (b) implicitly allows an “injured party” other than a user or consumer to recover if the product causing the injury is defective and unreasonably dangerous within the meaning of ORS 30.920(1), but we have seen no indication that the legislature meant this reference to the “injured party” to alter the test for defects stated in Comment i.
The instruction therefore was erroneous. We have given serious consideration to the question whether the error was so prejudicial as to require reversal. It can be argued that when the product is a vehicle to be used in traffic, the expectations of a driver and of a pedestrian as to the visibility of pedestrians from the driver’s seat are unlikely to be so different as to lead a jury to a different result. If the instruction had only made a passing reference to the expectations of a pedestrian, submerged in otherwise correct instructions, perhaps it might be unlikely to have affected the outcome.
See Smith v. Holst,
The decision of the Court of Appeals is reversed and the case is remanded to the circuit court for further proceedings.
Notes
This appears also from Justice Howell’s opinion for the Court a month before
Phillips v. Kimwood Machine Co.,
“However, be all this as it may, it is generally recognized that the basic difference between negligence on the one hand and strict liability for a design defect on the other is that in strict liability we are talking about the condition (dangerousness) of an article which is designed in a particular way, while in negligence we are talking about the reasonableness of the manufacturer’s actions in designing and selling the article as he did. The article can have a degree of dangerousness which the law of strict liability will not tolerate even though the actions of the designer were entirely reasonable in view of what he knew at the time he planned and sold the manufactured article. As Professor Wade points out, a way of determining whether the condition of the article is of the requisite degree of dangerousneses to be defective (unreasonably dangerous; greater degree of danger than a consumer has a right to expect; not duly safe) is to assume that the manufacturer knew of the product’s propensity to injure as it did, and then to ask whether, with such knowledge, something should have been done about the danger before it was sold. In other words, a greater burden is placed on the manufacturer than is the case in negligence because the law assumes he has knowledge of the article’s dangerous propensity which he may not reasonably be expected to have, had he been charged with negligence.” (Emphasis added.)
The parenthetical phrases that we have emphasized in this quotation repeat the “consumer expectation” standard of Comment i, and in the surrounding text the court plainly thought that it was explaining the same standard.
