ELR Citation: ELR 20225
No(s). 05-2420 (Cal. App. 3d Dist. Nov 7, 2006)

A California appellate court held that a water company may go forward with its strict liability claim against an oil company for methyl tertiary butyl ether (MTBE) contamination stemming from gasoline leaks at nearby service stations. Although the oil company merely added the MTBE to the gasoline and did not operate the stations where the leaks occurred, strict liability broadly extends to products that have left the control of the manufacturer and are placed on the market, and a manufacturer must reasonably anticipate uses of the product while it is on the market. Foreseeable uses of gasoline reasonably include storing it at a gas station, transferring it through gas pumps into a vehicle, and storing it in a vehicle's tank before it is actually burned as fuel. Because California law provides broad protection to bystanders and does not limit strict liability to situations occurring after the sale of the product, permitting injured third parties to recover for damages associated with any of those foreseeable uses is consistent with the state's strict liability doctrine. Accordingly, a lower court erred in dismissing this claim.