Opinion ID: 1598750
Heading Depth: 1
Heading Rank: 5

Heading: Submission of Strict Liability Theory.

Text: Amana also claims the trial court erred in submitting both strict-liability and breach-of-warranty theories. Citing Nelson v. Todd's Ltd., 426 N.W.2d 120, 125 (Iowa 1988), they claim the Ballards were precluded from receiving lost-profit damages under strict liability because they did not suffer the type of physical damage which will support consequential economic loss damages in tort. In Nelson, the owners of a butcher shop suffered damages when a meat curing agent failed to work as designed and prevent treated meat from spoiling. 426 N.W.2d at 121. The plaintiffs brought suit against the manufacturer of the curing agent, seeking damages for spoiled meat, lost past and future profits and the loss in value of their meat processing equipment and property. Id. We found that, in order to resolve the issue of whether both strict-liability and breach-of-warranty theories may be presented to the jury, we must determine whether contract law or tort law is best suited to the nature of the loss claimed, focusing particularly on anything dangerous to the user in the nature of the defect. Id. at 124. We ultimately determined the plaintiffs' proper remedy was in contract rather than tort because the loss related to a consumer or user's disappointed expectations due to deterioration, internal breakdown or nonaccidental cause.... Id. at 125. Tort theory, on the other hand, is generally appropriate when the harm is a sudden or dangerous occurrence, frequently involving some violence or collision with external objects, resulting from a genuine hazard in the nature of the product defect. For example, had [the curing agent] caused chemical burns to the [butchers'] hands or damaged their meat processing equipment, an action would lie in strict tort liability. That sort of harm could not have been reasonably anticipated by the contracting parties, and would be a hazard peripheral to the sale. Id. Thus, we held the trial court erred in submitting both strict-liability and breach-of-warranty theories to the jury. Id. Unlike the damages suffered by the plaintiffs in Nelson, we believe the injuries to the Ballards' swine herd support damages in tort. We believe the existence of toxins in the feed corn was a genuine hazard peripheral to the sale and a serious product defect, causing the death of swine and a significant business interruption. Consequently, we hold the trial court did not err in submitting both strict-liability and breach-of-warranty theories to the jury.