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Mario Miquel Jaramillo was injured at work when his right hand was caught between two rollers on a 1964 Flexo Folder Gluer (“FFG”) which his employer, Glenwood Universal Packaging, purchased as used equipment from Weyerhaeuser Company in 1986. The evidence demonstrated that Weyerhaeusar sold an average of 3 used FFG’s per year, owned patents related to technology used in FFG’s, and had a working relationship with FFG manufacturers.
Jaramillo filed a complaint in New York state court against Weyerhaeuser alleging strict product liability. The case was removed to federal district court (S.D.N.Y.) and Weyerhaeusar was granted summary judgment as a casual seller of FFG’s under New York law and, therefore, could not be held strictly liable.
Casual sellers and regular sellers are distinguished in New York case law in strict product liability actions. The casual seller is only liable if it fails to warn the consumer of known defects that are not obvious or easily recognizable. The appellate court also noted that whether strict liability applies to sales of used goods, as in the present matter, is an open question under New York law.
After an examination of similar case law, the Second Circuit determined that it was necessary to have a resolution of the question of whether a seller of used industrial equipment can be deemed a “regular” seller in order to consider the propriety of summary judgment. To answer that question, it was certified to the New York Court of Appeals. The Second Circuit retained jurisdiction pending the outcome of the certification.
To see the full article from JudicialView.com, click here.