Opinion
Briggs Plumbing Prоducts, Inc., doing business as Briggs Industries; Verson Allsteel Press, the predecessor of Allied Products Corporation (together Allied); and CR/PL, Inc., 1 manufactured inexpensive bathroom sinks, hundreds of which the Fieldstone Company installed in residential developments throughout San Diego County in the 1980’s. Field-stone, which brought this action to recoup costs of replacing sinks prematurely rusting and chipping, appeals from summary judgments in favor of the manufacturers. We affirm.
I
Factual and Procedural Background
The manufacturers produced low-cost enameled steel bathroom sinks; they carried written one-year warranties. Pursuant to Fieldstone’s specification, plumbing subcontractors installed the sinks in numerous Fieldstone residential developments. Instead of lasting twenty-five or more years as expected, unsightly rusting and porcelain chipping, or “popping,” occurred within one to five years, due to spot welding and inadequate coating around steel overflow outlets.
In response to homeowner complaints, Fieldstone spent more than $250,000 replacing 1,900 of the enameled steel sinks with ones made of vitreous china. When the manufacturers refused to reimburse Fieldstone, it filed this suit for breach of express and implied warranties, strict liability, implied equitable indemnity and declaratory relief. The manufacturers brought motions for summary judgment, arguing the products liability claims were meritless because there was no requisite property damage. Rather, the sinks only damaged themselves, and thus damages were purely
II
Discussion
A. Standard of Review
Summary judgment is proper only where there is no triable issue of material fact and the moving party is entitled to judgment as a matter of law. (Code Civ. Proc., § 437c, subd. (c).) “To secure summary judgment, a moving defendant may prove an affirmative defense, disprove at least one essential element of the plaintiff’s cause of action [citations] or show that an element of the cause of action cannot be established [citations].”
(Sanchez
v.
Swinerton & Walberg Co.
(1996)
B. Strict Liability Claims
Under California law, a manufacturer may be strictly liable for physical injuries caused to person or property, but not for purely economic losses.
(Seely
v.
White Motor Co.
(1965)
Fieldstone argues the economic loss rule does not foreclose tort recovery here because the sink defects—spot welding and insufficient coating—caused injuries—rusting and chipping—to other, nondefective portions of the sinks, and thus the requisite damage to “other property” occurred. The essential facts are undisputed;
4
the issue of whether Fieldstone suffered “prоperty damage” or merely “economic loss” related to the sinks presents a question of law.
(Sacramento Regional Transit Dist.
v.
Grumman Flxible, supra,
California courts, with little or no analysis of the issue, have indicated that manufacturers may be strictly liable for physical injury to the product itself. In
Seely, supra,
Relying on the above cases, in
Sacramento Regional Transit Dist.
v.
Grumman Flxible, supra,
We conclude that here there was no injury to “other property” for purposes of imposing tort liability. The spot welding and inadequate coating were latent defects which made the sinks prone to rusting, chipping and рremature deterioration. In other words, this case presents a routine situation in which a purchaser seeks replacement costs because a poorly designed and built product failed to meet its expectations. The doctrine of strict liability, however, is not a substitute for contract and warranty law where the purchaser’s loss is the benefit of the bargain, and unless the parties specifically agree the product will perform in a certain way, the manufacturer is not responsible for its failurе. (See
Seely, supra,
63 Cal.2d at pp. 18-19.) Certainly, Fieldstone is a sophisticated consumer and could have specified a higher quality product; but, whether or not it is a “merchant” as defined by the Uniform Commercial Code, there is no justification here for imposing tort liability on manufacturers that guaranteed their products for only one year.
7
We reject Fieldstone’s analysis, under which virtually every defective
C. Equitable Indemnity Claims
While Fieldstone’s complaint did not contain negligence causes of action against the manufacturers, it alleged their “breaches” created the sink defects, and therefore it was “entitled to complete or partial implied equitable indemnity and/or contribution” from them, “for any damages sustained . . . , as well as for . . . costs and expenses, including attorneys’ fees, incurred in connection with its obligations to replace the defective sinks and perform related repairs.” The trial court determined the manufacturers could not be liable for indemnity, because they were not liable for Fieldstone’s economic damages under either a strict liability or negligence theory as a matter of law. We agree.
Equitable indemnity is a restitutionary concept; it is “ ‘ “a right which enures to a person who, without active fault on his part, has been compelled by reason of some legal obligation, to pay damages occasioned by the initial negligence of another, and for which hе himself is only secondarily liable.” ’ [Citation.]”
(Western Steamship Lines, Inc.
v.
San Pedro Peninsula Hospital
(1994)
As discussed above, strict liability has no application here. It is also well settled that
Seely, supra,
In an attempt to meet the J’Aire test, Fieldstone asserts it submitted evidence in opposition to the motions for summaiy judgment, establishing: (1) the manufacturers “knew that their bathroom sinks would be installed in middle-class homes . . . , [t]he sinks were specifically made for that purpose”; (2) the manufacturers “also knew that defects causing rusting and chipping would render the lavatories unserviceable and the homeowners would be harmed”; (3) “[t]here is no doubt here that the homeowners were damaged because the sinks had to be replaced for both aesthetic and functional reasons”; (4) “[t]he defective design and workmanship of the lavatories directly caused the unsightly, debilitating damage”; (5) “Briggs and [Allied] both knew their lavatories leaked, rusted and chipped, but warned no one”; and, (6) “[h]olding [the manufacturers] responsible for damages caused by the defective lavatories will encourage them to produce more sound products in the future, and discourage them from placing unsuitable products into the stream of commerce which flows straight into the laps of very unhappy consumers.”
Fieldstone’s analysis fails because the evidence does not suggest the transactions in question were intended to affect Fieldstone or the homeowners “in any way particular to [them], as opposed to all potential purchasers of the equipment. The absencе of this foundation precludes a finding of ‘special relationship’ as required by J’Aire: to the extent the [product] was intended to affect [Fieldstone or the homeowners] in the same way as all retail buyers, this becomes a traditional products liability or negligence case in which economic damages are not available. [Citation.]”
(Ott
v.
Alfa-Laval Agri, Inc., supra,
31 Cal.App.4th at pp. 1455-1456, fn. omitted.) We need not consider the remaining parts of the
J’Aire
test. “Even if [they] weighed in favor of finding a duty of care, we would still conclude that no duty existed. If a duty of care to avoid economic injury existed in the circumstances of the present case, every manufacturer would become an insurer, potentially forever, against economic loss from negligent defects in a product used for
D. Express Warranty Claims
jn opposition to the manufacturers’ motions, Fieldstone argued they breached express warranties created by their promotional literature. 10 The trial cоurt, however, found that as a matter of law Fieldstone failed to give reasonable notice as required by California Uniform Commercial Code section 2607, subdivision (3)(A). It provides, “[t]he buyer must, within a reasonable time after he or she discovers or should have discovered any breach, notify the seller of breach or be barred from any remedy . . . .” (Ibid.) On appeal, Fieldstone contends the notice requirement is inapplicable because there was no privity of contract between it and the manufacturers. 11
Fieldstone relies on
Greenman
v.
Yuba Power Products, Inc.
(1963)
That is hardly the situation where, as here, plaintiff is a sophisticated development company which has built many thousands of homes over the last two decades. In fact, after
Greenman,
the court held the notice requirement applied to an implied warranty claim against a developer. It stated: “In
Alternatively, Fieldstone contends it gave the manufacturers reasonable notice. It submitted evidence of the following: Fieldstone’s sink replacements “began in January 1988. The lavatory replacements were 66 for the year in 1988, with a slowly increasing frequency of replacement in 1989 (158 for the year) and 1990 (209 for the year). However, in 1991, replacements more than equalled what they had been in 1988, 1989 and 1990 combined—replacements in 1991 were 460 for the year.” Initially, Field-stone believed the sink problems were associated with homeоwner abuse; however, by 1989 it “believed the rusting and chipping to be a problem with the lavatories,” but it was unaware “of the origin or cause of the problem.” Fieldstone only learned of the specific nature of the sink defects after it filed this action in September 1993. On March 14, 1991, Fieldstone’s then customer service manager, Robert Chappell, sent Briggs a letter notifying it of the sink problems. It also sent a letter to a person at Delco Products whom Chappell “vaguely recall[ed] . . . was a [CR/PL] representative.” Thеre is no evidence Fieldstone apprised Allied of any problem before it filed this action.
The question of whether notice was reasonable must be determined from the particular circumstances and, where but one inference can be drawn from undisputed facts, the issue may be determined as a matter of law.
(Whitfield
v.
Jessup
(1948)
E. Implied Warranty Claims
The trial court determined as a matter of law, Fieldstone’s implied warranty claims were meritless because it had no privity with the manufacturers. We conclude there was no error.
“Vertical privity is a prerequisite in California for recovery on a theory of breach of the implied warranties of fitness and merchantability. [Citations.]”
(U.S. Roofing, Inc.
v.
Credit Alliance Corp.
(1991)
While conceding it did not contract with the manufacturers, Fieldstone argues that because at least Briggs and CR/PL “make sales calls on developers such as Fieldstone,” and “Fieldstone’s plumbers special ordered shipments of lavatories for use in Fieldstone’s specifically designated projects,” “Fieldstone is a purchaser from respondent as much as it is from its plumbers . . . within the overall context of the relationships among the parties.” We reject such a notion. Further, Fieldstone’s reliance on
Presiding Bishop
v.
Cavanaugh, supra,
We also reject Fieldstone’s argument the court’s ruling was erroneous as to CR/PL because it did not raise lack of privity as a basis for its motion for
Disposition
The judgments are affirmed. Fieldstone to bear the manufacturers’ costs on appeal.
Nares, J., and Haller, J., concurred.
Notes
We refer to defendants collectively as manufacturers, and individually as Briggs, Allied and CR/PL where appropriate.
The California Supreme Court first stated this rule in dicta in
Seely, supra,
The preclusion of recovery for economic losses is based on a policy determination that a consumer should not bear the risk of physical injury when purchasing a product, but may “be fairly charged with the risk that the product will not match his economic expectations unless the manufacturer agrees that it will.”
(Seely, supra,
In support of its argument, Fieldstone relied on the declaration of a mechanical engineer, in which he stated:
“It is my opinion that the pressed-steel lavatories suffer from a design defect involving the use of spot welds to seal the flange of the overflow channel to the bottom of the lavatory. The lavatories also suffer from a manufacturing defect insofar as there is a lack of or insufficient coating on the inside of the overflow channel to seal the crevice between the flange and the bowl. These defects allow water to come into contact with bare steel. The resulting damage is rusting in the overflow channel which conodes the lavatory; the oxidation also causes the porcelain coating on the user side of the lavatory to ‘pop’ or chip off, which in turn creates an environment conducive to further rusting.”
“The lavatories suffer from yet another manufacturing defect; there is insufficient coating of the edge of the overflow hole. Again, this allows water to come into contact with uncoated steel which then rusts; the rust undermines the integrity of the adjacent porcelain coating, causing it to chip off; when the porcelain is chipped off, more steel is exposed and more rusting ensues.”
“In replacing the lavatories, it is also necessary to replace the pop-up and other items (such as the trap) which may become damaged or otherwise require replacement either because of the lavatory’s damage or the repair/replacement process.”
Fieldstone also relied on the declaration of a professional metallurgical and corrosion engineer, who held the same opinions regarding the nature of defects and damages.
Fieldstone’s reliance on
Raven’s Cove Townhomes, Inc.
v.
Knuppe Development Co.
(1981)
The court analyzed
International Knights of Wine, Inc.
v.
Ball Corp., supra,
As observed by the United States Supreme Court, “[w]hen a product injures only itself the reasons for imposing a tort duty are weak and those for leaving the party to its contractual remedies are strong.”
(East River S.S. Corp.
v.
Transamerica Delaval
(1986)
Our holding makes it unnecessary to determine whether, in our view, tort recovery is best limited to the situation in which damages to the product itself where caused by a sudden or calamitous event—as held in many jurisdictions, and as was the case in both
Seely, supra,
Moreover, even where a duty exists, recovery for economic loss has been narrowly confined to situations where “the injury is not part of the plaintiff’s ordinary business risk.”
(J’Aire, supra,
As a general rule, privity of contract is a required element of an express breach of warranty cause of action.
(Burr
v.
Sherwin Williams Co.
(1954)
Interestingly, with regard to its implied warranty cause of action, Fieldstone contends it was in privity with the manufacturers.
For instance, in
Peterson
v.
Lamb Rubber Co.
(1960)
Additionally, we find no merit to Fieldstone’s contention the trial court erred in granting Allied’s joinder in the mоtions of Briggs and CR/PL, because it failed to submit its own evidence in support. The trial court determined the joinder was insufficient under local rule, but determined, “in light of the rulings in [Briggs’s and Allied’s] motions for summary judgment, . . . despite the procedural errors in Allied’s joinder, the motion for summary judgment should be granted as a matter of law based on [the rulings on the other motions].” We find no fault, as under the circumstances of this case, the same facts were germane to all motions, and to require further proceedings would cause substantial waste of time and resources.
