Signal Oil and Gas Company, Petitioner v. Universal Oil Products, Respondents

Summary

The Texas Supreme Court affirmed the lower courts' judgments that Signal Oil could not recover under its strict liability and negligence claims, but reversed and remanded the implied warranty claim against Alcorn and Procon for a new trial with a proportional damages allocation. The Court held that Procon is a seller under the Texas Business and Commerce Code and that buyer negligence only reduces, not bars, recovery on an implied warranty claim. The opinion also clarified that damages to both the product and other property support a strict liability action. Justice Pope filed two concurring opinions criticizing the Court's new rule distinguishing strict liability from contract actions.