California
Appeals

Standard of Review-Presumption that the record contains evidence to sustain every finding of fact

We are required, however, to “start[] with the presumption that the record contains evidence to sustain every finding of fact.  [Citations.]”  (Foreman & Clark, supra, 3 Cal.3d at p. 881.)  And indeed, in this case it does.  As the trial court noted, “[i]f goods contain an impurity of such a nature as to render them unusable, and therefore unsaleable, for the general uses and purposes of goods of the kind described, the goods are not merchantable.”  (Burr v. Sherwin Williams Co. (1954) 42 Cal.2d 682, 694.)  The goods must be “fit for the ordinary purposes for which such goods are used[.]”  (§ 2314, subd. (2)(c).)  Evidence was submitted at trial that the selection of a radial lip-type oil seal made from viton was an appropriate selection for the gearbox application of Rockwell based on consideration of shaft speed, size compatibility, and heat tolerance.  The operating conditions for Rockwell’s use of the seals were not unusual or excessive for viton seals.  It was a typical application, even if specially designed for Rockwell.  A viton polymer properly formulated should have been able to handle the application easily.  However, almost 30 percent of the Mao Shun brown viton radial lip-type oil seals leaked.  This was considered a catastrophic leakage rate in the industry.  Garlock’s expert, Leslie Horve, stated that one of the purposes of oil seals is to prevent premature oil leakage and when a seal experiences premature leakage it has not performed its intended purpose and has failed.  When Rockwell replaced all brown viton seals with green viton seals, the leakage rate immediately went down to one or two percent and there was no shaft grooving. 

Garlock Sealing v. Nak Sealing-C050813-3/21/07 CA3