876
Opinion of the Court
results would change with a subsequent sale. Indeed, other things being equal, a rule that diminishes liability because of resale would diminish a basic incentive of defective-product tort law: to encourage the manufacture of safer products. East River provides an unsatisfactory answer to the question why a series of resales should progressively immunize a manufacturer from liability for foreseeable physical damage that would otherwise fall upon it, since the Subsequent User does not contract directly with the manufacturer, and it is likely more difficult for a consumer to offer the appropriate warranty on used products. While nothing prevents a user/reseller from offering a warranty, respondents have not explained why the ordinary rules of a manufacturer's tort liability should be supplanted merely because the user/reseller may in theory incur an overlapping contract liability. The holding here does not affect East River's rule that it is not a component part, but the vessel— as placed in the stream of commerce by the manufacturer and its distributors—that is the "product" that itself causes the harm. Nor does the holding impose too great a potential tort liability upon a manufacturer or a distributor. It merely maintains liability, for equipment added after the initial sale, despite the presence of a resale by the Initial User. Pp. 878-885. 69 F. 3d 1432, reversed.
Breyer, J., delivered the opinion of the Court, in which Rehnquist, C. J., and Stevens, Kennedy, Souter, and Ginsburg, JJ., joined. O'Connor, J., filed a dissenting opinion, post, p. 885. Scalia, J., filed a dissenting opinion, in which Thomas, J., joined, post, p. 885.
Keith Zakarin argued the cause for petitioner. With him on the briefs was Forrest Booth.
Daniel B. MacLeod argued the cause for respondents. With him on the brief was Duncan Koler.*
Justice Breyer delivered the opinion of the Court. The issue before us concerns limits upon the damages that a tort plaintiff in admiralty can recover for physical damage to property caused by a defective product. In East River
*Steven B. Fisher and Michael H. Williamson filed a brief for All Alaskan Seafoods, Inc., as amicus curiae urging reversal.
Jan S. Amundson, Quentin Riegel, and Gregory S. Gilchrist filed a brief for the National Association of Manufacturers et al. as amici curiae urging affirmance.
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