Bulk Supplier Doctrine

The bulk supplier doctrine is a defense for companies that sell a material in bulk to a manufacturer or employer, rather than to the end user. It argues that the supplier could reasonably rely on the knowledgeable buyer to warn workers and consumers, so the supplier is not liable for failing to warn them directly.

Origin

The doctrine developed from a comment in the Restatement (Second) of Torts on when a supplier may rely on an intermediary to pass on warnings, and from cases involving chemicals and raw materials shipped in bulk. The Restatement (Third) of Torts: Products Liability carries similar ideas, and states apply it differently.

Significance in Asbestos Context

Asbestos fiber was often sold in bulk, by mining companies and fiber distributors, to manufacturers that made it into insulation, textiles, cement products, gaskets and other goods. When those workers or users sue the fiber supplier, the supplier may invoke this doctrine, arguing that the manufacturer was a sophisticated buyer and that the supplier had no practical way to reach the people who handled the finished product. Courts usually weigh several factors: how dangerous the material was, how practical it was to warn the end users, how knowledgeable the buyer was, and whether the supplier had reason to believe the buyer would actually warn. Plaintiffs respond with evidence that the danger was grave, that suppliers knew buyers were not warning, or that warnings could easily have been printed on bags and shipping papers. The doctrine is closely tied to the sophisticated user and raw material supplier defenses, and how it plays out depends on state law and the facts.

Example Sentence

The fiber supplier raised the bulk supplier doctrine, arguing that the gasket manufacturer, not the supplier, was responsible for warning the mechanics.

Related Terms

Sophisticated User Doctrine, Raw Material Supplier Defense, Learned Intermediary Doctrine, Failure to Warn, Duty to Warn, Component Parts Doctrine, Calidria

Notes

• Tell your lawyer what you remember about the bags, labels or packaging the raw material came in.
• Evidence that no warning reached you, even years later, can matter against this defense.