Opinion ID: 1611019
Heading Depth: 1
Heading Rank: 4

Heading: Was Getty a seller engaged in the business of selling the product?

Text: In Pridgett v. Jackson Iron and Metal Co., 253 So.2d 837 (Miss. 1971), a defendant, Magna America Corp., was granted a directed verdict based on a finding that the plaintiff had failed to establish a prima facie case under § 402A. This Court found that Magna was not in the business of selling fifty-five gallon drums, even though Magna regularly sold empty paint drums to a scrap iron dealer, Jackson Iron & Metal Co., 253 So.2d at 840. In Alley v. Praschak Machine Co., 366 So.2d 661 (Miss. 1979), this Court, citing Pridgett, stated that a seller who is not in the business of selling the defective product but makes an isolated sale, is not subject to the strict liability standard of § 402A as adopted in State Stove Mfg. Co. Holifield claims that Getty's policy of selling wells by competitive bidding should be viewed as evidence that Getty is in the business of marketing oil wells. He also states that Getty's sale of petroleum products should be interpreted as indicating that Getty is in the business of selling wells. This Court is not persuaded by Holifield's argument, but finds Pridgett, supra, controlling. The Gardner Court stated: The doctrine of strict liability in tort, as set forth in § 402A of the Second Restatement of Torts does not apply here since the oil well was not a product and Chevron was not a seller engaged in the business of selling such products.    Strict liability does not apply to entities like Chevron, which had merely constructed an item when those entities were not engaged in the business of selling such items. Frietas v. Twin City Fisherman's Cooperative Ass'n., 452 S.W.2d 931 (Tex.Civ.App., 1970). The Supreme Court of Texas stated the basic rule that strict liability applies to any person engaged in the business of selling products for use or consumption. Although it is not necessary that the defendant actually sell the product, the defendant must be engaged in the business of introducing the product into channels of commerce. Armstrong Rubber Co. v. Urquidez, 570 S.W.2d 374 (Tex., 1978), rehearing denied Oct. 4, 1978. Chevron did not manufacture, lease or sell nipples of the type that failed. Chevron did construct the well, but it was not sold, leased or placed in any way in the stream of commerce. Rather, Chevron designed the well and constructed it in the field of Sherman, Texas, for its own use. On that basis, the trial court properly determined that, as a matter of law, strict liability in tort did not apply. The record reflects the following uncontradicted facts to exist: The wellhead equipment was constructed by Getty's predecessor, Skelly Oil Company, for its own use. The well, including the wellhead equipment, was sold by Getty Oil Company to Austin Oil Company. The record discloses no evidence that any of the individual components of the wellhead equipment, consisting of the master valve, the master valve handle or the access vertical ladder, were defective. On the contrary, testimony was produced which affirmatively showed that all of such components were working properly when the sale was made to Austin. The alleged design defect consisted solely of appellant's claim that the vertical ladder used for access to the master valve on the wellhead equipment was positioned so close to the valve handle that it interfered with the turning operation. This led to the practice of employees to remove the valve handle and apply a crescent wrench in closing the master valve. There is no proof or evidence in the record showing that the master valve could not be properly closed by using the crescent wrench. There is no proof in the record to show that Getty was engaged in the business of selling oil wells but, instead, was regularly engaged in the business of exploration, drilling and production of oil and gas, and the sale of the well to Austin Oil, Inc., in 1982 was an isolated transaction. This Court holds that the foregoing factual circumstances do not warrant the imposition of strict liability in tort.