Smith v. Gates Rubber Co. Sales Division, Inc.

STONE, J.

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Appellant manufacturer appeals from a judgment for damages in a breach of warranty action.

Respondents own ranch property some 65 miles east of San Diego, which they decided to develop as a guest ranch. This required development of the existing water system which they found to be badly corroded. Respondent Fadem inquired at Winn Supply Company about the possibility of substituting plastic pipe in place of metal and adding a considerable amount of pipe. Winn notified appellant Gates Rubber Company, a manufacturer of polyethylene pipe, of the inquiry, and appellant sent Nordstrom, a field representative, to discuss the matter with Fadem. During the course of the discussion Fadem, using a diagram, explained the proposed project to Nordstrom and told him the water system would be expected to operate under pressures ranging from 20 to 50 pounds. Nordstrom replied that the pipe was suitable for 50 pounds pressure, with a bursting pressure three or four times greater. Nordstrom also showed Fadem a manufacturer’s chart indicating a safety factor of four to one. Respondents were given pamphlets and advertising circulars distributed by appellant, which represented that its polyethylene pipe was designed for 50 pounds working pressure with a four to one safety factor, that is, its bursting point was four times the 50 pounds work

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ing pressure. Further, Nordstrom assured Fadem the pipe was rodent repellent or rodent safe.

Respondents installed polyethylene pipe manufactured by appellant but purchased from Winn Supply Company. After a period of time a considerable amount of half-inch pipe had to be replaced because of many small holes eaten in it by rodents. It was returned and the contract for its purchase rescinded. Later, numerous breaks and ruptures developed in the 2-ineh line, and much of it had to be replaced.

Respondents, as plaintiffs, filed this action against both Winn Supply Company, the seller, and appellant manufacturer, alleging breach of an express warranty and of an implied warranty of fitness. At the close of plaintiffs’ case, the action was dismissed as to Winn Supply Company, but respondents recovered a judgment against appellant Gates Rubber Company Sales Division, Inc.