Tuesday, December 3, 2013

CBS, Inc. v. Ziff-Davis Publishing Co. case brief

CBS, Inc. v. Ziff-Davis Publishing Co. case brief summary
553 N.E.2d 997 (1990)



CASE SYNOPSIS
Plaintiff purchaser sought review of an order of the Appellate Division of the Supreme Court, First Judicial District (New York) that affirmed an order of the Supreme Court, New York County, dismissing its claim for breach of an express warranty in plaintiff's contract action arising from its purchase of defendant sellers' consumer magazine businesses.

CASE FACTS
Plaintiff purchaser challenged the dismissal of its claim for breach of express warranty for failure to plead reliance in its contract action arising from its purchase of defendant sellers' consumer magazine businesses.

DISCUSSION

  • The court modified the dismissal to eliminate the warranty claim from the dismissal. 
  • The court concluding that the reliance element in an express warranty action required plaintiff to plead that it relied on the express warranty as being a part of the bargain between the parties, not that it believed the truth of the warranted information. 
  • The court ruled that the required reliance element was established because plaintiff's purchase of the magazine businesses from defendants was based on defendants' express warranty as to the profitability of the businesses, even though plaintiff questioned the accuracy of the financial information which defendants warranted to be true. 
  • The court affirmed the remainder of the dismissal

CONCLUSION
The court modified, with costs, the dismissal of plaintiff purchaser's breach of express warranty claim in its contract action arising from its purchase of defendant sellers' consumer magazine businesses, ruling that plaintiff properly pleaded reliance on defendants' express warranty as to the profitability of the businesses. Dismissal of the remainder of the action was affirmed.


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