Guinan v. Famous Players-Lasky Corp.
Facts
The defendant distributed motion picture films and accumulated scrap film from repair work, which it stored in metal containers and vaults. Its head shipper, Doherty, agreed to give scrap film to Bowditch, and the jury could find that Doherty knowingly allowed Bowditch's men to carry the film away in burlap bags without warning them of its dangerous qualities. One employee, Shirley, carried a bag onto a streetcar and placed it near a heater; the bag ignited, with evidence of flame and an explosive report, injuring the plaintiff passenger. There was evidence that the film was highly inflammable, liable to explode, and that the defendant's agents knew this, while Bowditch, his son, and Shirley did not.
Issue
Whether the defendant could be held liable to a third-party passenger for injuries caused by scrap film after its employee delivered it in burlap bags without warning, where the film was allegedly inherently dangerous, the recipient allegedly lacked knowledge of the danger, and intervening acts occurred during transportation. The case also presented whether the employee acted within the scope of employment and whether violation of the fire regulation requiring scrap film to be safely disposed of could support negligence.
Rule
A seller or supplier of an article not inherently dangerous is not negligent absent proof that it knew or should have known of the article's harmful qualities. But where an article is inherently dangerous to life, limb, or property, a supplier who delivers it without notice of its dangerous qualities to a person lacking knowledge of those qualities may be liable to other persons for injuries that reasonably could be contemplated and that in fact result, so long as the injured person's negligence did not contribute. A violation of a statute or regulation is evidence of negligence as to consequences the law was intended to prevent, and an intervening act does not break causation if it ought to have been foreseen. An employer is liable for an agent's acts within the real or apparent scope of authority even if done contrary to instructions.
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Dana sues Orion for negligence. Under the majority rule, Orion is most likely liable if the jury finds which of the following?