Stang v. Hertz Corporation

490 P.2d 475, 83 N.M. 217
CourtNew Mexico Court of Appeals
DecidedOctober 20, 1971
Docket626
StatusPublished
Cited by16 cases

This text of 490 P.2d 475 (Stang v. Hertz Corporation) 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
Stang v. Hertz Corporation, 490 P.2d 475, 83 N.M. 217 (N.M. Ct. App. 1971).

Opinion

OPINION

WOOD, Chief Judge.

The automobile accident involved in this case occurred when a tire blew out. The tire, manufactured by Firestone Tire & Rubber Company, was mounted on a car belonging to Hertz Corporation. The car had been rented by a nun, and Catherine Lavan, also a nun, was a passenger in the car when the blowout occurred. Catherine Lavan suffered injuries in the accident resulting in her death. Prior appellate decisions were concerned with damages in wrongful death actions. Stang v. Hertz Corporation, 81 N.M. 69, 463 P.2d 45 (Ct.App.1969), aff’d 81 N.M. 348, 467 P.2d 14 (1970). Subsequent to the appellate decisions, the case was tried and submitted to a jury as against Firestone. The verdict was in favor of Firestone. There is no appeal from this verdict. The trial court directed a verdict in favor of Hertz. The dispositive issues in this appeal concern the liability of Hertz. Plaintiffs contend there were issues for the jury concerning: (1) an express warranty and (2) strict liability in tort.

Express warranty.

Plaintiffs assert the rental agreement contains an express warranty. They rely on a statement that the “vehicle” was in good mechanical condition. Defendant contends that “vehicle” does not include tires because twice in the rental agreement “tires” were referred to in a sense separate from “vehicle.”

Apart from the rental agreement, a Hertz representative, in a conversation with one of the nuns, stated: “you have got good tires.” Plaintiffs contend this, statement was also an express warranty as. to the tires. Defendant asserts this statement was no more than “puffing.” See § 50A-2-313(2), N.M.S.A.1953 (Repl.Vol. 8,. pt. 1).

It is not necessary to answer these contentions. Section 50A-2-313(l), N.M.S. A. 1953 (Repl.Vol. 8, pt. 1) reads:

“Express warranties by the seller are created as follows:
“(a) Any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to the affirmation or promise.
“(b) Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods shall conform to the description.
“(c) Any sample or modél which is. made part of the basis of the bargain creates an express warranty that the whole of the goods shall conform to the sample or model.”

We assume there is no distinction between “seller,” as used in the statute, and defendant’s status as lessor. See Uniform Laws Annotated, Uniform Commercial Code § 2-313, official comment 2 (1962). Under § 50A-2-313(l), supra, the affirmation of fact (the rental agreement) creates an express warranty if it “becomes part of the basis of the bargain.” Similarly, the description of the goods (the reference to good tires) creates an express warranty if the description “is made part of the basis of the bargain.” Compare the comments concerning representations made for the purpose of inducing a sale in Vitro Corp. of America v. Texas Vitrified Supply Co., 71 N.M. 95, 376 P.2d 41 (1962).

There is no evidence that any of the nuns relied on, or in any way considered, the terms of the rental agreement before agreeing to the rental. See Speed Fastners, Inc. v. Newsom, 382 F.2d 395. (10th Cir. 1967). The comment concerning “good tires” was made after the car had been rented. See Terry v. Moore, 448 P.2d 601 (Wyo.1968). There is no evidence that either the terms of the rental agreement or the reference to “good tires” were part of the basis of the bargain. There was insufficient evidence for the question of express warranty to be submitted to the jury.

Strict liability in tort.

Plaintiffs assert: “Strict liability for one who places a defective product in the stream of commerce is now a fact of law,. * * * ” They urge this court to adopt this concept in New Mexico, and apply it to a lessor. Evidence pertaining to this contention is that tire failure was the cause of the accident; this failure resulted from impact damage to the tire; the im- , pact damage existed at the time the car was rented; and the impact damage was hot discoverable by normal inspection procedures. The rule sought is that stated in 2 Restatement Torts 2d, § 402A (1965). See Schrib v. Seidenberg, 80 N.M. 573, 458 P.2d 825 (Ct.App.1969); Moomey v. Massey Ferguson, Incorporated, 429 F.2d 1184 (10th Cir. 1970). Section 402A, supra, reads:

“(1) One who sells any product in a. defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his property, if
“(a) the seller is engaged in the business of selling such a product, and
“(b) it is expected to and does reach the user or consumer without substantial change in the condition in which it is sold.
“(2) The rule stated in Subsection (1) applies although
“(a) the seller has exercised all possible care in the preparation and sale of his product, and
“(b) the user or consumer has not bought the product from or entered into any contractual relation with the seller.”

Section 402A, supra, applies to sellers; the defendant in this case is a lessor. If we apply strict liability against a seller we see no basis in logic for distinguishing a lessor because the practical effect is the same. The strict liability rule has been extended to lessors. Bachner v. Pearson, 479 P.2d 319 (Alas.1970); Price v. Shell Oil Company, 2 Cal.3d 245, 85 Cal.Rptr. 178, 466 P.2d 722 (1970); Stewart v. Budget Rent-A-Car Corporation, 470 P.2d 240 (Hawaii 1970); Cintrone v. Hertz Truck Leasing, etc., 45 N.J. 434, 212 A.2d 769 (1965); see German, Seller Beware—Strict Liability But Not Absolute Liability, XXXVII Insurance Counsel Journal 44 (1970).

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Bluebook (online)
490 P.2d 475, 83 N.M. 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stang-v-hertz-corporation-nmctapp-1971.