Brown v. Glaxosmithkline, LLC. and Providence Health System - Oregon

Considering the plain meaning of a "seller... engaged in the business of selling" a product, is one who transfers ownership of the product to another in exchange for valuable consideration, Hospitals that provide medication in exchange for valuable consideration can be liable for product liability under ORS 30.920.

Defendants administered the drug Zofran to Plaintiff during pregnancy. Plaintiffs alleged this caused their daughter to be born with an irreparable heart defect. Plaintiff's assigned err to the trial court's grant of summary judgment. The trial court found that there was not material fact that Defendant was a "seller... engaged in the business of selling" under Oregon's strict product liability statute, ORS 30.920. At trial Defendants presented four (4) arguments based on the notion that hospitals are not sellers of products, but are quintessential service providers. Plaintiffs argue that the nothing in the text or context of ORS 30.920 indicates that hospitals should be exempt from strict product liability. After conducting a statutory interpretation analysis the court found that the ordinary meaning of a "seller... engaged in the business of selling" a product, is one who transfers ownership of the product to another in exchange for valuable consideration. The court reasoned that because the Defendant transferred Zofran to the Plaintiffs for valuable consideration, they could be considered a seller. The court held that there is sufficient evidence to create a genuine issue of material fact. Reversed and remanded.