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- W2493554906 abstract "Fire Brick Engineers (“FBE”) was hired to install refractory lining for two furnaces in Spectro Alloys Corporation’s (“Spectro”) smelter plant. When the lining failed prematurely, Spectro sued FBE for breach of express and implied warranties and breach of contract in a U.S. District Court in Minnesota. Spectro sought direct damages for repair costs and consequential damages for lost profits while its plant was closed for repairs. Under the contract, FBE agreed to install lining material manufactured by a third party, and expressly warranted that its work would be free from defects. FBE’s warranty specifically excluded materials manufactured by third parties, but provided that such materials would carry the warranty extended to FBE by the material’s manufacturer. In capital letters, the warranty excluded consequential damages. On FBE’s motion for summary judgment, the court found that installation services were the predominant purpose of the contract, and that the Uniform Commercial Code (UCC), governing transactions in goods, was therefore not applicable. Spectro Alloys Corp. v. Fire Brick Eng’rs Co., Inc., 2014 U.S. Dist. LEXIS 140817 (D. Minn. 2014). Accordingly, Spectro could not sue for breach of implied warranties under the UCC. Important to the court’s decision were FBE’s disclaimer of warranties for goods manufactured by others and the skilled nature of the installation work. The court held that Minnesota’s common law does not recognize an implied warranty of fitness or merchantability in service contracts. While Spectro could still sue FBE on the basis of its express warranty that its installation services would be free from defects, the Court next ruled that the disclaimer of consequential damages in the express warranty clause limited the damages which Spectro could recover. The court held that the disclaimer did not bar damages for repair costs because they were direct damages, but agreed with FBE that Spectro’s claimed lost profits due to" @default.
- W2493554906 created "2016-08-23" @default.
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- W2493554906 date "2014-01-01" @default.
- W2493554906 modified "2023-09-27" @default.
- W2493554906 title "Owner's Implied Warranty and Lost Profits Claims Against Contractor Are Denied" @default.
- W2493554906 hasPublicationYear "2014" @default.
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