First National Bank Ex Rel. Huckleby v. Nor-Am Agricultural Products, Inc.

537 P.2d 682, 88 N.M. 74
CourtNew Mexico Court of Appeals
DecidedApril 30, 1975
Docket1375
StatusPublished
Cited by79 cases

This text of 537 P.2d 682 (First National Bank Ex Rel. Huckleby v. Nor-Am Agricultural Products, Inc.) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank Ex Rel. Huckleby v. Nor-Am Agricultural Products, Inc., 537 P.2d 682, 88 N.M. 74 (N.M. Ct. App. 1975).

Opinion

OPINION

SUTIN, Judge.

This is an appeal from summary judgment granted in favor of defendants Morton International, Inc. and Nor-Am Agricultural Products, Inc. on plaintiffs’ complaint and on the cross-claim of the co-defendant New Mexico Mill & Elevator Co., d/b/a Golden West Seed Co.

We reverse.

A. Parties

Morton International and Morton Salt Co. are the same entity. Nor-Am is a subsidiary of Morton International and is the national distributor of “Panogen-15”, the product manufactured by Morton. These three defendants will be referred to as “Morton”.

New Mexico Mill & Elevator Co., d/b/a Golden West Seed Co., is the grain company which received Panogen-15 from Morton. Golden West used Panogen-15 in treating grain for seed purposes. It will be referred to as “Golden West”.

Ernest and Lois Huckleby are the father and mother of Dorothy Jean, Charles Amos, Ernestine and Michael Huckleby. They will be referred to as “Huckleby”.

Both Huckleby and Golden West now appeal the summary judgment in favor of Morton.

On this appeal, Golden West has adopted all issues and theories raised by Huckleby, as well as all of Huckleby’s arguments in support.

B. Huckleby’s Theories for Recovery

Huckleby’s complaint sets forth five theories for recovery. With regard to three of those theories, we agree with the trial court that there is no genuine issue as to any material fact, and that Morton, therefore, is entitled to judgment as a matter of law.

The first theory on which we affirm is: The labelling on Morton’s product, and the warnings contained therein, violated the Federal Insecticide, Fungicide and Roden-ticide Act, 7 U.S.C.A. § 135 et seq. (1964), as amended, (1975 Supp.) ; and that such violation constituted negligence per se.

We find nothing in the record to suggest violation of the federal statute. On the contrary, the record contains evidence that the labelling information in question had been registered with and approved by the Department of Agriculture, in compliance with the statute.

The second theory on which we affirm is: Morton was negligent in the formulation, testing and investigation of its product.

The product in question is Panogen-15. Huckleby does not contend that Morton negligently manufactured Panogen-15. Huckleby contends that Morton should not have manufactured it at all. In reality, this is a nuisance theory, and not a theory of negligence in manufacture. This theory fails for two reasons. First, Panogen-15 was manufactured pursuant to authority granted by the federal government. Therefore, its manufacture does not constitute a nuisance, as a matter of law. Section 40A-8-1, N.M.S.A.1953 (2d Repl.Vol. 6). Second, our Supreme Court has expressed its unwillingness to allow a personal injury claim to go to trial on a nuisance theory. Jellison v. Gleason, 77 N.M. 445, 423 P.2d 876 (1967).

The third theory on which we affirm is: Morton is absolutely liable for injuries caused by the marketing of an ultrahazardous product.

New Mexico has adopted the rule of absolute liability for ultrahazardous activities given by Restatement, Torts §§ 519, 520, (1938) at 41-47. Thigpen v. Skousen & Hise, 64 N.M. 290, 327 P.2d 802 (1958). Huckleby contends that Panogen grain treatment is an ultrahazardous activity, as defined in the Restatement rule. We disagree. That rule defines an ultrahazardous activity as one (a) that is not a matter of common usage; and (b) in which the danger cannot be eliminated by the exercise of utmost care. Restatement, Torts § 520. The record shows that neither of those conditions are met in the instant case. First, Panogen grain treatment had wide acceptance and use throughout the country at the time of the Huckleby incident. Second, the arguments of all parties recognize that adequate warning would eliminate the danger.

We reverse, and hold that Huckleby and Golden West can go to trial on their complaint and cross-claim on the following two theories for recovery:

(1) Negligence as to the warning, provided by the seller, of dangers associated with use of the seller’s product;

(2) Special liability of the seller of a product for physical harm to a user or consumer, pursuant to Restatement, Torts, 2d § 402A, v. 2 (1965), at 347-348.

Golden West may proceed against Morton only on its claim for contribution. See this opinion, infra.

C. Facts

In the summer of 1969, Ernest Huckleby and a number of his friends in Alamogordo, New Mexico, were raising hogs as a sideline. On August 16, 1969, Huckleby and three friends went to Golden West to buy some grain to feed their hogs. They all bought grain, and in the course of so doing, one friend asked an employee of the company if they could get some of the older, worse-looking grain, that was standing around in sacks towards the rear of the area, for a cheaper price. The employee allowed them to take that grain free of charge.

It appears that mixed in with that poor quality feed grain was grain that had been treated with Panogen-15. Panogen-15 is a liquid treatment for grain that is to be used as seed. The treatment prevents fungus and other seed diseases.

Morton knew the method of processing grain into seed suitable for planting. It knew that “the first step in the treatment of [grain] for planting is the separation of good [grain] from chaff, sticks, dirt, weed seeds, broken seeds, shrivelled seeds and other materials not suited for planting * * *. After cleaning, the good [grain] is routed to the [grain] treater where the Panogen-15 treatement is applied; the treated [grain] is then bagged. In the course of treating and bagging good [grain] a residue of [grain] may collect underneath the treater or in the bagging area: This treated residue is commonly called ‘sweepings’.”

During the period of the events that gave rise to this case, Panogen-treated grain was widely used for planting throughout' the country. Morton sold about 174,000 gallons of liquid Panogen-15 each year. Panogen-15 contains mercury, which makes it very highly toxic. Eight parts of Panogen-treated grain per million parts of untreated grain, by weight, is a lethal dose. Following the Huckleby incident, the government suspended Morton’s license to market Panogen-15.

Huckleby fed his hogs from the grain that had been obtained from Golden West, mixing the grain with garbage. He fattened a boar hog on this diet for seven weeks. On October 4, 1969, he slaughtered the boar hog. For the next two or three months, the family ate meat and internal organs from the slaughtered hog with regularity. In late October, Huckleby’s hogs that had been fed from the treated grain became ill. On December 4th, Ernestine became ill; in late December, Charles Amos became ill; and in January, 1970, Dorothy Jean became ill. On March 22, 1970, Mrs. Huckleby gave birth to Michael, who was born with congenital defects.

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Bluebook (online)
537 P.2d 682, 88 N.M. 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-ex-rel-huckleby-v-nor-am-agricultural-products-inc-nmctapp-1975.