Oscar Mayer Corp. v. Mincing Trading Corp

In Oscar Mayer Corp. v. Mincing Trading Corp., 744 F. Supp. 79 (D.N.J.1990), Judge Wolin determined that a broker who sold a shipment of peppercorns containing small stones was not liable for damages even though the broker was engaged in the distribution of the defective product. Oscar Mayer had ordered peppercorns to be used in its salami from Mincing, who, in turn, asked a spice broker, Sayia, to locate the product. Sayia never took title to, or possession or control of the peppercorns. Oscar Mayer paid damages to consumers injured by the stones and sued Mincing. Mincing filed a third-party complaint against Sayia. In determining that Sayia was not strictly liable in tort for the defective peppercorns, Judge Wolin noted that strict liability extends to all parties in the chain of distribution of defective product, including "manufacturers, distributors, suppliers or retailers and other parties that receive, sell, or resell the product." Id. at 84. As to brokers' liability, he concluded: A broker who negotiates a contract of sale between the merchants who will be parties to the actual sale transaction does not fall within this category. Whereas an enterprise engaged in the chain of distribution can recapture the expense of an occasional defective product by an increase in the cost of the product, and a party that is in a contractual relationship with the manufacturer or supplier is in a position to exert pressure to ensure the safety of the product, a broker can do neither.Ibid. The judge observed that under the circumstances, fairness dictated that no liability be imposed on the broker for defects it was unable to control or eliminate. Id. at 84-85.