EDWIN GREEN, JR., AS ADMINISTRATOR OF THE ESTATE OF EDWIN GREEN, DECEASED, AND MARY GREEN, APPELLANTS,
v.
THE AMERICAN TOBACCO COMPANY, APPELLEE

Fla. | 1963-06-05
No. 31960
ROBERTS, C. J., and TERRELL, O’CONNELL and HOBSON (Ret.), JJ., concur., THOMAS and CALDWELL, JJ., dissent.
154 So. 2d 169 Florida Supreme Court (1963) Negative Treatment
Cited by 96 cases

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Synopsis

The Florida Supreme Court answered a certified question from the Fifth Circuit regarding whether manufacturers have absolute liability for breach of implied warranty of merchantability when the dangerous defect could not have been discovered by reasonable application of human skill and foresight at the time of sale. The court held that a manufacturer's liability for breach of implied warranty is not limited by the foreseeability of danger or the state of scientific knowledge at the time of manufacture.


Holding

Yes. A manufacturer's implied warranty liability for merchantability is not limited by the manufacturer's actual knowledge or opportunity for knowledge of a defective or dangerous condition, nor is it limited by the foreseeability doctrine or the "reasonable application of human skill and foresight" test. The basis of implied warranty liability rests on the seller's undertaking to be responsible if the product is not in fact merchantable or fit for its ordinary use, regardless of whether the defect could have been discovered.


Key Quotes

“the basis of such liability is the undertaking or agreement, attributed by law, to be responsible in the event the thing sold is not in fact merchantable or fit for its ordinary use or purposes. The assumption of responsibility, even implied assumption, is not, of course, necessarily co-equivalent with skill and knowledge.”

Establishes that implied warranty liability rests on the seller's undertaking to ensure merchantability, independent of the seller's actual knowledge or skill to detect defects.

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Facts & Procedural History

Edwin Green died of lung cancer in 1958 after using cigarettes manufactured by American Tobacco Company from 1924 or 1925 until February 1, 1956. The …

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Opinion of the Court
DREW, Justice.

*170DREW, Justice.

Pursuant to statutory certification procedure1 the United States Court of Appeals for the Fifth Circuit has presented to this Court a question concerning implied warranty liability for lack of merchantability or fitness under Florida law, arising in an action for wrongful death consolidated with a suit instituted by the decedent Green prior to his death from lung cancer in 1958. The trial of the cause resulted in a general verdict for defendant, and the jury also answered a number of special interrogatories hereinafter detailed. Upon appeal the Court of Appeals affirmed, 304 F.2d 70, one judge dissenting, but in recognition of the controlling effect of Florida law in a diversity action a petition for rehearing was granted “to the extent necessary to certify [the following] question or proposition of the laws of Florida” to this Court:

“Does the law of Florida impose on a manufacturer and distributor of cigarettes absolute liability, as for breach of implied warranty, for death caused by using such cigarettes from 1924 or 1925 until February 1, 1956, the cancer having developed prior to February 1, 1956, and the death occurring February 25, 1958, when the defendant manufacturer and distributor could not on, or prior to, February 1, 1956, by the reasonable application of human skill and foresight, have known that users of such cigarettes would be endangered, by the inhalation of the main stream smoke from such cigarettes, of contracting cancer of the lung?”

We note at the outset that all questions of causation and privity are foreclosed by the terms of the question certified, which expressly assumes, as found by the jury’s response to interrogatories in the trial of the cause, that defendant’s cigarettes caused plaintiff’s fatal cancer. We conclude also that the question thus framed does not present for our consideration the issue of whether the cigarettes which caused a cancer in this particular instance were as a matter of law unmerchantable 2 in Florida under the stated conditions, nor does it request a statement of the scope of warranty implied in the circumstances of this case. The inquiry before us is, instead, limited to the status of Florida law upon imposition of liability “as for breach of implied warranty” when the manufacturer or warrantor “could not, by the reasonable application of human skill and foresight, have known of the danger.” 2(a) By response to a specific interrogatory the jury in this case found that the defendant, by this standard, could not at the pertinent time have known of the danger involved. The general verdict for defendant was responsive to the trial court’s instruction that “implied warranty does not cover substances in the manufactured product the harmful effects of which no developed human skill or foresight can afford knowledge.”

Upon the critical point, our decisions conclusively establish the principle that a manufacturer’s or seller’s actual knowledge or opportunity for knowledge of a defective or unwholesome condition is wholly irrelevant to his liability on the theory of implied warranty, and the question certified must therefore be answered in *171the affirmative. As already indicated, we do not feel that the inquiry in terms either requests a response on the ultimate issue' of liability in this case or requires any comment on the disposition of issues between the court and jury under the law relating to scope and breach of the implied warranty that a product supplied for human consumption shall be reasonably fit and wholesome for that general purpose.

Our conclusion on the point presented rests not only upon a determination, acknowledged in the opinion of the Court of Appeals herein, that there is no direct and affirmative precedent in our law for the “human skill and foresight” limitation on warranty liability, but also upon what seem to us clear and definitive pronouncements in our case law negativing this limitation. One of the more recent and exhaustive opinions is that in Carter v. Hector Supply Co.3 This Court in that case expressly overruled the holding of the court of appeal “that proof of actual or implied knowledge of a defect on the part of a [defendant] is essential to his liability on an implied warranty.” 4 “Implied knowledge” refers clearly to the situation where a defendant could, with reasonable diligence or “application of human skill and foresight,” have had knowledge. The decision in Carter on this point of law therefore effectively negates any idea that proof of lack of opportunity for knowledge of a harmful condition might prevent implied warranty liability.

No reasonable distinction can, in our opinion, be made between the physical or practical impossibility of obtaining knowledge of a dangerous condition, and scientific inability resulting from a current lack of human knowledge and skill. Sencer v. Carl’s Markets 5 imposed upon a dealer liability for sale of a can of sardines which he could not have known was dangerous without opening a sealed container and thereby destroying the product’s salability. The opinion quotes with approval from text authorities6 explaining the prevailing rule that the fact that a defect could not possibly have been known or discovered by a defendant does not prevent liability, because “the same argument * * * may be made in regard to any implied warranty, not only of food * * * where the buyer must have been aware that the seller could not discover a defect if it existed.” This case illustrates, we think, that whatever may be the scope of an implied warranty in a given case, the basis of such liability is the undertaking or agreement, attributed by law, to be responsible in the event the thing sold is not in fact merchantable or fit for its ordinary use or purposes. The assumption of responsibility, even implied assumption, is not, of course, necessarily co-equivalent with skill and knowledge. To the extent that our cases take note of a defendant’,s opportunity for knowledge,7 it is merely in recognition of a supplier’s superior position, relative to the purchasing public, as a factor affecting policy considerations rather than determining the limits of implied warranty liability in a particular situation.

*172The Florida decisions8 recognize a distinction between the ordinary merchantability warranty involved in the instant case and a warranty of fitness for a particular purpose which “must and necessarily does depend upon whether or not the buyer relied upon his own judgment at the time of the purchase or relied on the skill or judgment of the seller.” The opinions refer to the classical statement of implied warranty law in Benjamin on Sales,9 containing a full discussion of the derivation of these principles governing implied warranties in the common law. The decision in Lambert v. Sistrunk,10 denying a merchant’s liability for sale of a defective stepladder, is an application of one of the limiting principles discussed by Benjamin and incorporated in statutes on this subject: If the defect is discoverable by simple observation then the law will imply no warranty against its existence. The opinion in that case characterizes implied warranty liability as an exception to the doctrine of caveat emptor, and relates this liability to “the reliance by the buyer on the seller’s judgment,” but does not in terms or by implication limit such liability to the situation where a dealer or manufacturer could, by reasonable care or “application of human skill,” have known of the danger. Whether or not reliance is justified, when the defect is one which a purchaser need not reasonably expect, would depend not on the actual state of human or industrial knowledge, which may be quite unknown to the purchasing public generally, but on what information the buyer may, under the circumstances, reasonably suppose the seller has.11

In sum, our case law affirmatively sup- • ports and indicates no departure from the rule that implied warranty liability is not limited by the foreseeability doctrine, the “reasonable application of human skill and foresight” test of tort liability:

“ * * * The warranty of merchantable quality does not rest, and from the beginning did not rest, upon any such basis. It is a matter of contract, of interpretation of the language used in the light of the fact that the seller is a dealer, and dealers deal in merchantable goods. The only ‘reliance’ which it involves is reliance upon the seller’s *173undertaking, as it is reasonably understood by the buyer. The pleasant sound of ‘fitness for the purpose’ should not be allowed to divert attention from one warranty to the other, or to obscure the fact that goods are merchantable only if they are fit for ordinary use. * * * ” 12

The contention that the wholesomeness of a product should be determined on any standard other than its actual safety for human consumption, when supplied for that purpose, is a novel proposition in our law, and one which we are persuaded has no foundation in the decided cases. To hold that prevailing industry standards supplant the ordinary standard of objective truth and proof, and should be conclusive on the issue of a product’s reasonable fitness for human use or consumption, would be to shift to the purchaser the risk of whatever latent defectiveness may ultimately be proven by experience and advancement of1 human knowledge, a risk which we are convinced was from the inception of the implied warranty doctrine intended to be attached to the mercantile function. There exists, we think, no real alternative and no valid objection to this distribution of the burden, if the public health' is to be protected in any practical sense from exploitation by those who, for a profit motive, undertake to supply the vast and ever increasing variety of products which the people by unprecedented powers of commercial persuasion are daily urged to use and consume.

Accordingly, the question propounded to us, and found by us to be within the contemplation of our Rules, is answered in the affirmative as hereinabove set forth.

The Clerk of this Court shall forthwith transmit to the certifying Court a true copy hereof, and shall return to said Court any original papers or documents which may have been transmitted here for our inspection.

It is so ordered.

ROBERTS, C. J., and TERRELL, O’CONNELL and HOBSON (Ret.), JJ., concur.

THOMAS and CALDWELL, JJ., dissent.


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Citator

Cited By (44 total)

  • West v. Caterpillar Tractor Co., Inc., 336 So. 2d 80 (Fla. 1976)
    …instrumentality exception to the privity requirement was applicable so that liability was extended to persons one should expect to be in the vicinity of the proper use of the chattel. We approached strict liability in Green v. American Tobacco Co., 154 So. 2d 169 (Fla.1963), which was a suit against the manufacturer and distributor of cigarettes. The Court observed that the suit involved a commodity which was available indiscriminately to the public generally, and applied a rule of absolute or strict liabili…
  • Russell v. Cmty. Blood Bank, Inc., 185 So. 2d 749 (Fla. 2d DCA 1966)
    …warranty to blood is that, according to the opinions we have read, the defect of serum hepatitis virus cannot be eliminated, regardless of the amount of inspection or care. In light of this fact, the case of Green v. American Tobacco Co., Fla.1963, 154 So. 2d 169, is especially ominous. In Green the Florida Supreme Court held that: “ * * * [Ojur decisions conclusively establish the principle that a manufacturer’s or seller’s actual knowledge or opportunity for knowledge of a defective or unwholesome conditi…
    1 / 2
  • Adair v. THE Island Club, 225 So. 2d 541 (Fla. 2d DCA 1969)
    …on Sales, § 206. And in Matthews v. Lawnlite Co., Fla. 1956, 88 So. 2d 299, the Supreme Court of Florida said, “[a]n implied warranty does not protect against hazards apparent to the plaintiff.” See also Green v. American Tobacco Company, Fla.1963, 154 So. 2d 169; Lambert v. Sis-trunk, Fla. 1952, 58 So. 2d 434; 1 Williston on Sales, § 207. Adair further alleged that The Island Club owned or had in its possession a defective gas mask which it made available to and offered to Adair for the purpose of ridding…

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