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Overstreet v. Norden Laboratories

United States Court of Appeals for the Sixth Circuit

669 F.2d 1286 (1982)

Facts

Dr. Luel Overstreet (plaintiff), a Kentucky veterinarian and horse breeder, inoculated his mares with a vaccine that its maker, Norden Laboratories, Inc. (Norden) (defendant), marketed as effective against the rhinopneumonitis virus that caused pregnant mares to abort their fetuses. Nevertheless, six of Overstreet’s mares contracted rhinopneumonitis and aborted their pregnancies. Overstreet brought a diversity action against Norden for breach of express and implied warranties. Overstreet could not prove that he had relied on Norden’s representation of its vaccine’s efficacy, but the district court failed to instruct the jury that a claim for breach of express warranty required proof of reliance. Overstreet claimed consequential damages for the loss of his foals, but the court failed to inform the jury that causation was an element of a claim for such damages. Although reliance was not an element of a claim for breach of implied warranty, the evidence was insufficient to support such a claim. The jury found in Overstreet’s favor and awarded him damages for the value of the aborted foals. Norden appealed to the Sixth Circuit.

Rule of Law

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Issue

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Holding and Reasoning (Keith, J.)

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Concurrence (Kennedy, J.)

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