Thursday, December 26, 2013

Schurtz v. BMW of North America case brief

Schurtz v. BMW of North America case brief summary
814 P.2d 1108 (1991)

CASE SYNOPSIS
Plaintiff car buyer brought suit against defendant seller in the district court (Utah), alleging breach of express and implied warranties under the Magnuson-Moss Warranty Act, specifically 15 U.S.C.S. §§ 2310(d)(1) and 2301(6), and Utah Code Ann. §§ 70A-2-715 and -719 (1990). The district court granted seller partial summary judgment, disallowing buyer's claim for incidental and consequential damages, and buyer appealed.

DISCUSSION

  • The court observed that there was a split of authority among the states as to whether subparts (2) and (3) of Uniform Commercial Code § 2-719 should be read dependently or independently. 
  • The court chose to read the provisions independently, holding that when a warranty limits the remedies available to the buyer to repair or replacement and also provides that the buyer may not recover incidental and consequential damages, if the repair or replacement provision fails of its essential purpose, as described in § 2-719(2), the incidental and consequential damages limitation in the warranty remains valid and must be examined to determine whether it is unconscionable under § 2-719(3).
CONCLUSION
The court vacated the grant of summary judgment to seller and remanded for further proceedings on the warranty question. The court directed the trial court to readdress the attorney fees question after deciding the warranty issues.

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