Goldberg v. Kollsman Instrument Corp. - 12 N.Y.2d 432, 240 N.Y.S.2d 592, 191 N.E.2d 81 (1963)

Rule:

A breach of warranty is not only a violation of the sales contract out of which the warranty arises but is a tortious wrong suable by a noncontracting party whose use of the warranted article is within the reasonable contemplation of the vendor or manufacturer.

Facts:

Appellant's daughter was killed in a plane crash. Appellant sued defendant airline, as well as respondents, Kollsman Instrument Corporation, manufacturer or supplier of the plane's altimeter, and Lockheed Aircraft Corporation, maker of the plane itself. Appellant charged respondents with breach of their respective implied warranties of merchantability and fitness, which allegedly caused the fatal crash. The district court dismissed the complaint against respondents, and the appellate court affirmed the dismissal. Appellant challenged the decision. 

Issue:

Did the lower courts err in dismissing appellant’s complaint against respondents?

Answer:

Yes, with respect to the aircraft manufacturer. No, with respect to the altimeter manufacturer.

Conclusion:

The state high court reversed as to respondent aircraft manufacturer. The court held that at least where an article was such that when used for the purpose for which it was made it was likely to be a source of danger if not properly designed and fashioned, that article's manufacturer may be liable for breach of law-implied warranties, regardless of privity with an injured party or parties, so long as that party's use of the article was reasonably contemplated. The aircraft manufacturers fell within this rule. The court affirmed, however, the dismissal as to respondent altimeter manufacturer, as it did not deem it necessary to extend the above rule to component part manufacturers.