Velez v. Craine & Clark Lumber Corp.

305 N.E.2d 750, 33 N.Y.2d 117, 350 N.Y.S.2d 617, 13 U.C.C. Rep. Serv. (West) 793, 1973 N.Y. LEXIS 920
CourtNew York Court of Appeals
DecidedNovember 21, 1973
StatusPublished
Cited by56 cases

This text of 305 N.E.2d 750 (Velez v. Craine & Clark Lumber Corp.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Velez v. Craine & Clark Lumber Corp., 305 N.E.2d 750, 33 N.Y.2d 117, 350 N.Y.S.2d 617, 13 U.C.C. Rep. Serv. (West) 793, 1973 N.Y. LEXIS 920 (N.Y. 1973).

Opinion

Jones, J.

This appeal seeks review of a jury verdict for injured plaintiffs based on defective scaffold planking when the recovery at the time of trial was predicated on a breach of warranty theory. The question before us is what shall be the effect of our decision in Codling v. Paglia (32 N Y 2d 330) under the doctrine of strict products liability.

In Supreme Court, Kings County, plaintiffs recovered a judgment based on jury verdicts rendered after separate trials on the issues of liability and damages. On appeal, the Appellate Division, Second Department, by a divided vote affirmed the findings of fact but reversed the judgment on the law and dismissed the complaint. Plaintiffs now appeal to our court as of right.

The job superintendent of Julius Nasso Concrete Corporation (the Contractor) ordered a quantity of lumber from defendant lumber company by telephone. He testified that he asked for scaffold planking; defendant’s vice-president who took the order testified that he asked for rough spruce planking without specifying which of two available grades he wanted or indicating the use to which it would be put. Defendant lumber company delivered some 200 pieces of 2 inch by 9 inch rough spruce planking 13 feet long; the Contractor’s foreman checked for quantity but not for quality. The lumber was stacked with only ends and [120]*120edges visible. Later the planks were brought down from the first floor of the building under construction to the C-3 level. About five or six planks were laid side by side an inch or so apart, over an opening with one end of each plank resting on a concrete platform and the other end on a steel beam with an overhang of a foot. Plaintiffs, a carpenter and a laborer, both stepped out on this planking platform at about the same time, and a few seconds later the middle plank cracked, causing them to fall some 25 or 30 feet to the foundation below. After the accident plaintiff Velez saw that the broken plank was rotted. The uncontroverted testimony was that the plank which broke was rotted on one side with a split or egg-shaped break all the way across the rotted area which was about 20 inches in diameter and ran completely across the plank.

Plaintiffs brought the present action to recover damages for the personal injuries which they suffered on the theories of both negligence and breach of warranty. At the close of the entire case at the separate trial on the issue of liability, the trial court dismissed the negligence causes of action and reserved decision on defendant’s motion to dismiss the causes of action for breach of warranty to the extent that it was based on the claim of a valid disclaimer of liability within the purview of the Uniform Commercial Code (§ 2-316, subd. [2] and § 1-201, subd. [10]). The jury found for plaintiffs on the theory of breach of warranty, and the Trial Judge denied defendant’s motion to dismiss. A different jury subsequently awarded substantial damages. No issue is tendered on the appeal now before us as to either the negligence theory of liability or the issue of damages.

On the issue of liability for breach of warranty the invoice for the lumber was received in evidence. It bears in large capital letters the legend

“ NO CLAIMS ALLOWED UNLESS MADE IMMEDIATELY AFTER. DELIVERY ” (underscored words in original). Immediately below this legend appeared the following:

NOTE — The purchaser shall be deemed to have accepted these goods as is, the seller having made no representations or warranties whatsoever with respect to their quality, fitness for use, or in any other regard thereto.”

The word NOTE ” was printed in the largest type used in the body of the invoice, but the text of the disclaimer is printed in the smallest type used on the invoice.

[121]*121The majority at the Appellate Division found that the “ only serious question ” presented on the appeal to that court was the effect to be given this disclaimer of liability or exclusion of warranty of fitness under the Uniform Commercial Code. The trial court had held that the requirements of the Uniform Commercial Code (§ 2-316, subd. [2] and § 1-201, subd. [10]) were not met and accordingly did not reach the question as to whether, had they been met, the disclaimer would have been valid against the purchaser’s employees. The majority at the Appellate Division, on the other hand, held that the requirements of the code had been met on the facts of this case and that the effect of the disclaimer extended to plaintiffs. The dissenters at the Appellate Division would have sustained the verdict for plaintiffs on what is now described as the strict products liability theory which we upheld in Codling v. Paglia (32 N Y 2d 330, supra) which had not been decided at the time of the trial or of the appeal, but which, as the dissenters noted, had been foreshadowed by decisions in each of the other three Departments of the Appellate Division (i.e., Codling v. Paglia, 38 A D 2d 154 [3d Dept.]; Singer v. Walker, 39 A D 2d 90 [1st Dept.]; and Ciampichini v. Ring Bros., 40 A D 2d 289 [4th Dept.]). It was the position of the dissenters that even if the disclaimer were otherwise valid, they would hold it ineffective to shield defendant lumber company from liability to these plaintiffs.

The order of the Appellate Division should be reversed and the case remitted for a new trial because the charge to the jury was erroneous under Codling, when viewed with the benefit of hindsight.

In view of our holding in Codling v. Paglia (32 N Y 2d 330, supra) the liability of defendant lumber company must be determined under the principle of strict products liability there announced. If this verdict for plaintiffs could have been sustained on that theory on the record before us, we would have reversed the order of the Appellate Division and reinstated plaintiffs’ judgment. We conclude, however, that plaintiffs’ verdict cannot be sustained under Codling on the present record and accordingly we reverse and remit the case for a new trial in the light of our decision in Codling.

[122]*122In the Codling formulation: —

(a) Defendant lumber company, here the supplier, would be liable,
(b) To plaintiffs as users (an a fortiori liability as compared to liability to nonuser, innocent bystanders as in Codling, cf., e.g., Goldberg v. Kollsman Instrument Corp., 12 N Y 2d 432),
(c) If the product, here the rough spruce planking, was defective, and
(d) If the defect was a substantial factor in bringing about plaintiffs’ injuries; and
(e) If at the time of the occurrence the plank was being used for the purpose and in the manner normally intended, and
(f) If plaintiffs, as users of the product would not by the exercise of reasonable care have both (i) discovered the defect and (ii) perceived its danger, and finally
(g) If plaintiffs by the exercise of reasonable care would not otherwise have averted their injuries. [32 N Y 2d, at p. 342.]

Although this trial, held in May, 1971, was not conducted in clairvoyant anticipation of our decision in Codling, the record now before us meets many of the requirements we there set down.

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305 N.E.2d 750, 33 N.Y.2d 117, 350 N.Y.S.2d 617, 13 U.C.C. Rep. Serv. (West) 793, 1973 N.Y. LEXIS 920, Counsel Stack Legal Research, https://law.counselstack.com/opinion/velez-v-craine-clark-lumber-corp-ny-1973.