Italia Societa Per Azioni Di Navigazione v. Oregon Stevedoring Co., Inc.

Summary

The Court held that a stevedore’s implied warranty of workmanlike service can be breached when equipment supplied under the stevedoring contract is defective and causes injury, even if the stevedore was not negligent and the defect was latent. The warranty requires equipment to be reasonably safe and fit for its intended use, and breach turns on the equipment’s actual condition rather than the stevedore’s knowledge or fault. The Court reversed and remanded because the lower courts had not decided whether the contract’s express negligence provisions affected the implied warranty. Justice Black, joined by the Chief Justice and Justice Douglas, dissented, arguing that the decision improperly imposed insurer-like liability contrary to the contract and governing compensation policy.