Martin Rispens & Son v. Hall Farms, Inc.

621 N.E.2d 1078, 22 U.C.C. Rep. Serv. 2d (West) 89, 1993 Ind. LEXIS 132, 1993 WL 366862
CourtIndiana Supreme Court
DecidedSeptember 22, 1993
Docket14S01-9309-CV-1021
StatusPublished
Cited by70 cases

This text of 621 N.E.2d 1078 (Martin Rispens & Son v. Hall Farms, Inc.) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin Rispens & Son v. Hall Farms, Inc., 621 N.E.2d 1078, 22 U.C.C. Rep. Serv. 2d (West) 89, 1993 Ind. LEXIS 132, 1993 WL 366862 (Ind. 1993).

Opinions

oN PETITION TO TRANSFER

KRAHULIK, Justice.

We grant transfer to address whether defendants, Martin Rispens & Son, and Pe-toseed Company, Inc. (Appellants-Defendants below) are entitled to summary judgment on certain warranty, negligence and strict liability in tort claims filed by Hall Farms, Inc. (Appeliee-Plaintiff Below). Martin Rispens & Son v. Hall Farms, Inc. (1992), Ind.App., 601 N.E.2d 429.

Facts

The facts pertinent to Hall Farms' petition are as set forth in the opinion of the Court of Appeals:

Hall Farms, Inc., farms about 1,400 acres of mostly rented land in Knox County, Indiana. It produces grain, row crops, hay, watermelons, and cantaloups and raises a few hogs and cows. In 1989, Hall Farms employed between 116 and 170 people; that year's watermelon and cantaloup crop generated some $440,000 in gross revenues, despite the fruit blotch. Much of Hall Farms' past success in the melon market is attributable to the Prince Charles variety watermelon seed, known for its high yield and resistance to disease. Hall Farms had used the variety since 1982 or 1983.
In August of 1988, Hall Farms ordered 40 pounds of Prince Charles seeds from Rispens at a cost of $85.40 per pound. [1081]*1081As requested, Rispens delivered the seeds, packaged in sealed one pound cans, in February 1989. Hall Farms stored the unopened cans until early April, at which time the watermelon seeds were germinated in two greenhouses.
On April 25th Mark Hall noted that about 15 seedlings were spotted with small yellow lesions. Suspecting gummy stem blight, a seed borne disease, Hall contacted a neighbor who, in turn, contacted Dr. Richard Latin, a plant pathologist from Purdue University. After transporting samples to the Purdue laboratory, Dr. Latin concluded the problem was neither gummy stem blight nor any fungus.
The lesions did not affect the plants' growth, however, and no plants died. The asymptomatic seedlings were transplanted to the fields between May 8th and 10th Mark Hall monitored the plants every three or four days for the next several weeks, as was his custom. Although some looked a little "funny," they were nevertheless "growing like mad." Record at 651. On July 5th or 6th, Hall spotted a watermelon blemished by a small purple blotch. By July 15th, the blotch was "spreading like wildfire." Record at 662. By harvest time ten days later, a significant portion of the watermelon crop had been ruined.
Hall Farms left most of the blotched Prince Charles watermelons in the fields. They were eventually plowed under in early September in preparation for the planting of oats and then soybeans. Volunteer plants appeared the next summer, but Mark Hall killed them with Blazer, a herbicide, before Dr. Latin could examine them. Hall Farms suffered no watermelon blotch in 1990, even in fields that were infected the year before. During its investigation, Hall Farms learned the Prince Charles variety seeds it planted came from Petoseed's Lot Nos. 1018 and 5024. Lot 1018 was grown in China; lot 5024 was grown in Mexico.
Based on his discussions with Dr. Latin, who was of the opinion the bacteria causing the fruit blotch were introduced into Indiana through the Prince Charles seeds, Hall reasoned the Chinese or Mexican fields must have had the fruit blotch because his plants had it. Petoseed, a part of Hall Farms' argument goes, was therefore culpable to the extent it knew or should have known the fields were infected and yet harvested the seeds of the infected watermelons for resale to businesses like his.

Rispens, 601 N.E.2d at 482-3 (footnote omitted).

Hall Farms sued Rispens (the seed retailer) and Petoseed (the seed grower) seeking a recovery on theories of strict liability in tort, negligence, and breach of express and implied warranties. After the trial court denied defendants' motions for summary judgment, defendants brought an interlocutory appeal. For Petoseed, the Court of Appeals ordered the trial court to enter summary judgment on the negligence and breach of warranty claims. The Court affirmed denial of summary judgment on the product liability claim because a question of fact existed about whether the damage was sudden and major. For Rispens, the Court of Appeals ordered the trial court to enter summary judgment on the strict liability, negligence, and all but one of the warranty counts. Summary judgment was denied with respect to one express warranty claim. Additionally, the Court held that Rispens and Petoseed had effectively limited their liability to the cost of the seed, whether the theory was contract or tort.

. Plaintiff Hall Farms seeks reinstatement of the trial court's denial of summary judgment on all issues. We grant transfer in order to discuss and decide the interrelationship of the three product liability theories, viz. warranty, strict liability, and negligence.

I. Warranty Claims

A. Express Warranties

Hall Farms argues that the Court of Appeals erred (1) in deciding the non-existence of certain express warranties as a matter of law, and (2) in holding that certain language on the Petoseed can and the [1082]*1082Rispens order form did not create express warranties.

Where an agreement is entirely in writing, the question of whether express warranties were made is one for the court. Woodruff v. Clark County Farm Bureau Coop. Ass'n. (1972), 158 Ind.App. 31, 50, 286 N.E.2d 188, 199. Here, all the representations upon which Hall Farms relies were in writing. Therefore, the Court of Appeals correctly determined the existence of express warranties as a matter of law.

Hall Farms' warranty claims arise out of the sale of goods and, thus, those claims are governed by Article 2 of the Uniform Commercial Code ("UCC"), Ind. Code Ann. § 26-1-2-101 through § 26-1-2-725 (West 1980 & Supp.1992). The UCC provides for the creation of express warranties.1 Ind. Code § 26-1-2-818.

An express warranty requires some representation, term or statement as to how the product is warranted. Candlelight Homes, Inc. v. Zornes (1981), Ind. App., 414 N.E.2d 980, 988. Stated another way, an express warranty may be created if the seller asserts a fact of which the buyer is ignorant, but not if the seller merely states an opinion on a matter on which the seller has no special knowledge and on which the buyer may be expected also to have an opinion and to exercise his judgment. Royal Business Machines, Inc. v. Lorraine Corp., 6883 F.2d 84, 41 (7th Cir.1980). Thus, a seller's factual state ment that a machine had a new engine constituted an express warranty. Perfection Cut, Inc. v. Olsen (1984), Ind.App., 470 N.E.2d 94, 95. Assurances by a seller that carpet would be replaced if any defects surfaced within one year of purchase was sufficient to create an express warranty. Carpetlaond U.SA. v. Payne (1989), Ind.App., 586 N.E.2d 806, 808.

By contrast, statements of the seller's opinion, not made as a representation of fact, do not create an express warranty. Thompson Farms, Inc. v.

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Bluebook (online)
621 N.E.2d 1078, 22 U.C.C. Rep. Serv. 2d (West) 89, 1993 Ind. LEXIS 132, 1993 WL 366862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-rispens-son-v-hall-farms-inc-ind-1993.