Iva Hampton v. Gebhardt's Chili Powder Co.

This diversity action arising in California presents a question of California law in the area of products liability.

California (through the Uniform Sales Act) requires that before one may hold a manufacturer or retailer liable, notice of breach of warranty must be given within a reasonable time after discovery of the defect in the product sold. The question here presented is whether notice must precede commencement of suit or whether it is sufficient if, as here, it is given prior to the filing of a supplemental complaint so long as otherwise given within a reasonable period of time. The district court in its construction of California authorities ruled that notice must precede filing of the original complaint. Judgment was rendered in favor of the defendants and the plaintiff has appealed. We have concluded that the district court was in error.

Appellant is a housewife residing in Ukiah, Mendocino County, California. On November 16, 1957, she purchased a can of chili powder manufactured by appellee, Cebhardt’s Chili Powder Company. The purchase was made at a Ukiah store, which was one of a chain of retail stores owned and operated by appellee, Safeway Stores, Inc. The chili…