Brown v. GlaxoSmithKline, LLC.

A hospital may be a "seller" that is "engaged in the business of selling" if it administers a dangerous, defective drug while providing healthcare services, and thus subject to strict products liability under the terms of ORS 30.920(1).

Providence Health System (Petitioner on Review) sought review of a decision from the Court of Appeals that reversed the trial court’s grant of Providence’s motion for summary judgment.  Plaintiffs-Respondents on Review sued Providence for strict product liability under ORS 30.920(1) because their child suffered heart damage in utero caused by a drug Providence administered to the child's mother. Providence argued it was not liable and moved for summary judgment because a hospital that supplies drugs when providing health care services is not a “seller” that is “engaged in the business of selling” products under the statutory framework. The trial court granted Providence’s motion and Plaintiffs appealed. The Court of Appeals reversed.  A “seller” that engages in the “business of selling” a defective and unreasonably dangerous product is strictly liable for damages caused by the product.  ORS 30.920(1).  The Court examined the text,context, and legislative history of ORS 30.920 and found that hospitals are not excluded from the framework of ORS 30.920.  The Court unanimously held a hospital can be considered a “seller” that is “engaged in the business of selling” when a hospital supplies and administers a dangerous, defective drug in the course of providing healthcare services, and therefore subject to strict products liability.  AFFIRMED Court of Appeals decision.  REVERSED trial court judgment and REMANDED for further proceedings.