Yates v. Pitman Manufacturing, Inc.

PRESENT: Carrico, C.J., Compton, Lacy, Hassell, Koontz, and
Kinser, JJ., and Stephenson, Senior Justice

EDDIE M. YATES
                                           OPINION BY
v.   Record No. 981474   SENIOR JUSTICE ROSCOE B. STEPHENSON, JR.
                                         April 16, 1999
PITMAN MANUFACTURING, INC.


             FROM THE CIRCUIT COURT OF BUCHANAN COUNTY
                      Keary R. Williams, Judge

      In this products liability personal injury case, we decide

whether the trial court erred in holding that the plaintiff, who

was not the purchaser of the product, must have given notice of

breach of warranty to the product's manufacturer as a

prerequisite to recovery for breach of warranty.   We also decide

whether the trial court erred in striking the plaintiff's

express warranty claim.

                                 I

      Eddie M. Yates sued Pitman Manufacturing, Inc. (Pitman),

seeking $3,000,000 in damages for injuries he sustained when an

outrigger on a crane unit manufactured and sold by Pitman came

down onto and crushed Yates' left foot.   Yates claimed that (1)

Pitman breached its implied warranty by selling a crane truck

system and outriggers that were not of merchantable quality or

fit for ordinary purposes; (2) Pitman breached its express

warranty that the crane unit, including the outriggers, met all

requirements of the American National Standards Institute (ANSI)
Standard B30.5-1968; (3) Pitman breached its duty to him to

design and market a crane system that was reasonably safe and

such negligence proximately caused his injuries; and (4) Pitman

negligently failed to maintain the crane truck by failing to

install an audible warning device for use with the outriggers.

     Prior to trial, Yates moved the court to exclude all

evidence concerning whether he had provided reasonable notice to

Pitman of its breach of warranty.      The trial court overruled

Yates' motion, holding that the notice provision of Code § 8.2-

607(3) applied and required Yates, who was not the buyer of the

crane unit, to give notice of breach of warranty to Pitman.

     At trial, at the conclusion of Yates' case-in-chief, the

trial court struck Yates' evidence on his breach of express

warranty claim.   The court held that Yates had failed to produce

any evidence that the crane unit did not comply with any

affirmation or promise made by Pitman.

     Thereafter, the case was submitted to the jury on the

breach of implied warranty and negligence claims.      The jury

returned its verdict in favor of Pitman, and the trial court

entered judgment on the verdict.       We awarded Yates this appeal.

                                II

     In 1982, Pitman sold the crane unit to Shelton Witt

Equipment, a distributor.   At the time, Pitman certified that

"these cranes meet applicable design and construction standards


                                   2
as prescribed in ANSI B30.5-1968."    When the unit was sold, ANSI

Standard B30.5-1968 mandated that "[e]ach outrigger shall be

visible from its actuating location."

     On July 19, 1991, when Yates was injured, Koch Carbon

(Koch) owned the unit and was using it to deliver equipment to

Baldwin Coal Corporation, Yates' employer.    At the time Yates

was injured, he was releasing restraining chains from the crane

truck's bed when suddenly, without warning, one of the

outriggers dropped onto his foot.     Unbeknownst to Yates, Ira

Stiltner, a Koch employee, had activated the outrigger from the

front of the truck.   When Stiltner activated the outrigger, he

could not see either Yates or the outrigger.

                                III

     First, we consider whether the trial court erred in holding

that Yates was required to provide Pitman with notice of breach

of warranty as a prerequisite to recovery therefor.    The issue

is one of first impression for this Court.

     To resolve the issue, we look to Code § 8.2-607(3), the

only provision of the Sales title of the Uniform Commercial Code

(the UCC) that requires notice to be given to a seller of goods.

The section provides, in pertinent part, the following:

          Where a tender has been accepted . . . the buyer
     must within a reasonable time after he discovers or
     should have discovered any breach notify the seller of
     breach or be barred from any remedy.



                                 3
        It is firmly established that, when a statute is clear and

unambiguous, a court must accept its plain meaning and not

resort to extrinsic evidence or rules of construction.     Gonzalez

v. Fairfax Hospital System, 239 Va. 307, 310, 389 S.E.2d 458,

459 (1990).    The pertinent language in Code § 8.2-607(3) is

unambiguous and clearly states that "the buyer must . . . notify

the seller of [the] breach."    (Emphasis added.)   Thus, accepting

the statute's plain meaning, it is apparent that the notice of

breach is required from the "buyer" of the goods.

        In the present case, Yates was not the buyer of the crane

unit.    Therefore, the notice requirement of Code § 8.2-607(3)

does not preclude Yates from maintaining a breach of warranty

action.

        We hold, therefore, that only buyers; i.e., those who buy

or contract to buy goods from a seller, Code § 8.2-103(a), must

give notice of breach of warranty to the seller as a

prerequisite to recovery.    Consequently, the trial court erred

in ruling that Yates was required to have given Pitman such

notice. ∗

                                  IV




∗
 The   conclusion we reach is consistent with the decisions of the
vast   majority of other courts that have ruled on the issue.
See,   e.g., Cole v. Keller Indus., Inc., 132 F.3d 1044, 1047 (4th
Cir.   1998), and the decisions cited therein.

                                   4
     Next, we consider whether the trial court erred in striking

Yates' evidence relating to his express warranty claim.    As

previously noted, Pitman certified that, at the time of sale,

the crane unit met "applicable design and construction standards

as prescribed in ANSI B30.5-1968."   At that time, ANSI Standard

B30.5-1968 required each outrigger to be "visible from its

actuating location."   Yates, however, presented evidence that,

from the actuating station, the crane operator, "[n]ot only

[could] not see the outrigger, but he [could not] see that

there's a person [who] might come into contact with that

hazard."

     Pitman contends that the trial court correctly struck

Yates' express warranty claim because Yates (1) "offered no

evidence that the ANSI certification was part of the bargain in

any sales transaction involving the product" and (2) failed to

produce any evidence that the crane unit's design and

construction violated the ANSI Standard.   We do not agree.

     Code § 8.2-313, the express warranty statute, provides as

follows:

          (1) 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.



                                 5
             (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 model 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.

             (2) It is not necessary to the creation of an
        express warranty that the seller use formal words such
        as "warrant" or "guarantee" or that he have a specific
        intention to make a warranty, but an affirmation
        merely of the value of the goods or a statement
        purporting to be merely the seller's opinion or
        commendation of the goods does not create a warranty.

        An affirmation of fact is presumed to be a part of the

bargain, and any fact that would remove such affirmation

out of the agreement "'requires clear affirmative proof.'"

Daughtrey v. Ashe, 243 Va. 73, 78, 413 S.E.2d 336, 339

(1992) (quoting with approval Official Comment 3 to § 8.2-

313).    Additionally, a plaintiff is not required to show

that he relied upon the affirmation in order to recover

under an express warranty claim.       Id. at 77-79, 413 S.E.2d

at 338-39.

        In the present case, Pitman presented no evidence that

would take its affirmation out of the agreement.

Therefore, its affirmation was a part of the basis of the

bargain.     See id. at 80, 413 S.E.2d at 339.    See also

Martin v. American Med. Sys., Inc., 116 F.3d 102, 105 (4th

Cir. 1997).    Thus, we hold that Pitman's affirmation of



                                   6
fact created an express warranty that applied to Yates even

though he was not the purchaser of the crane unit.   We also

hold that Yates presented evidence from which a jury could

reasonably conclude that the crane unit did not comply with

ANSI Standard B30.5-1968.   Therefore, the trial court erred

in striking Yates' express warranty claim.

                              V

     For the reasons stated, we will reverse the trial

court's judgment and remand the case for a new trial

consistent with the views expressed in this opinion.

                                       Reversed and remanded.




                                  7