When there is no Direct Causal Link Between an Injury-Producing Product and an Auctioneer’s Role in the Product's Distribution, a Commercial Car Auctioneer is not a Seller Under Arizona’s Product Liability Law

The Arizona Court of Appeals in Antone v. Greater Ariz. Auto Auction, Inc., 214 Ariz. 550 (Ariz. Ct. App. 2007), held that an auctioneer involved in the sale of a commercial vehicle cannot be considered “seller” under the Arizona product liability law because the auctioneer in this case neither participated in the process by which the product reached the purchaser nor did he control the manufacturing or production of the final product.  So, when there is no direct casual connection between the product that caused injury and the auctioneer’s role in the product distribution, the auctioneer cannot be brought under strict liability. 

In this case, the auctioneer sold a pickup truck to a third party “AS IS,” without any warranties to the truck’s safety.  The third party sold the truck to the two Appellants involved in this case.  While the Appellants were travelling in the truck, another vehicle rear-ended the truck, which caused a trailer hitch that apparently had not been properly installed to puncture the truck's fuel tank.  Soon the fuel tank ignited which causing burns and other injuries to the Appellants.  The Appellants sued the auctioneer alleging a claim of strict product liability. 

The trial court found in favor of the auctioneer and stated that the auctioneer was not a seller under § 12-681(9) because his sole contact with the vehicle was limited to conducting the sale. Id. At 552. Also, the auctioneer charged a flat fee for his services and sold the vehicle “AS IS” without any warranty to the title of the vehicle. Id.  And at no point of sale did the auctioneer take ownership or title of the vehicle.

 The trial court found that the auctioneer is not a seller under the Arizona’s product liability law when he plays a "passive role in contributing to the product's presence in the stream of commerce." Id. The trial court therefore concluded that the auctioneer did not possess the requisite indicia to be classified a 'seller' as defined under A.R.S. § 12-681. Id. The Appellant victims appealed the trial court’s decision.  And the sole question to be answered was whether the commercial car auctioneer was a "seller" within the meaning of Arizona Revised Statutes, § 12-681(9) and was therefore subject to strict liability under Arizona law.

The Court of Appeals stated that Arizona has not yet determined whether a commercial auctioneer such as the one in this case qualifies as a seller under § 12-681(9). Id. at 553. It is not a "wholesaler, distributor, retailer or lessor" in the ordinary use of these terms, but as the cases indicate, "seller" has been interpreted expansively when it serves the policies underlying strict liability. Id.

The Court found that the auctioneer does not have any ongoing relationship with any entity involved in the chain of distribution.  The auctioneer only facilitates sales of the commercial vehicle and it does not have any role in making the products safer.  The Court also observed that the auctioneer provides a service to parties in the direct chain of commerce. It charges fees to buyers and sellers who successfully use its services; however those fees are not dependent on the vehicle's specific condition or the vehicle's selling price.  At its essence, GAAA provides the service of facilitating sales transactions of used vehicles between commercial buyers and sellers. It has no ongoing relationship with any entity in the chain of distribution, particularly those entities with the ability to make products safer.   

The Court sated there is no evidence that the auctioneer in this case "significantly participate[s] in the overall process by which the product reaches . . . consumers" or "ha[s] the right to control the incidents of manufacture or distribution." Id. (quoting  Torres, 163 Ariz. at 95-96, 786 P.2d at 946-47. ).  Therefore, when there is no direct causal link between the injury-producing product and auctioneers role in the product's distribution, strict liability is simply not an appropriate theory of liability in this case.  The Court concluded that the auctioneer does not fall within the definition of seller under product liability.