I was going to suggest the Markham Colliery disaster, which I seem to recall was reported to have been due to material imperfections, but I think Lord Astronuc has a point, - had these things (bridges, ships, lifts, o-rings) been designed completely properly, taking into account all possible parameters, then the engineers would have taken steps to account for all eventualities.
Obviously I'm not pointing fingers, and engineers are (mostly) only human, but what is the definition of a 'material failure'? It might be prudent to limit this to cases where the materials used, for whatever reason, did not meet the design criteria (in terms of metallurgical composition, grain structure, that kind of thing) rather than design of the structure/product itself.
I don't think this has anything to do with unstable structure collapse, yielding, fracture, or boundary conditions. I subscribe to the idea that if something stops being fit for purpose, it has failed.