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Ashley Square, Ltd. v. Contractors Supply of Orlando, Inc.

Citations: 532 So. 2d 710; 13 Fla. L. Weekly 2039; 6 U.C.C. Rep. Serv. 2d (West) 1100; 1988 Fla. App. LEXIS 3877; 1988 WL 89713Docket: 87-2100

Court: District Court of Appeal of Florida; September 1, 1988; Florida; State Appellate Court

Narrative Opinion Summary

In this case, Ashley Square, Ltd. engaged a general contractor to construct an apartment complex, which subcontracted Acrylic Stucco Applicators, Inc. for stucco application. Contractors Supply of Orlando, Inc. provided the stucco, leading to a dispute after defects were discovered. Contractors Supply filed a mechanic's lien when Ashley Square withheld payment, while Ashley Square counterclaimed for breach of implied warranty of merchantability. The trial court ruled in favor of Contractors Supply on its lien and against Ashley Square on its counterclaim. However, on appeal, the court found that Contractors Supply qualified as a merchant under section 672.314 of the Florida Statutes, thus allowing Ashley Square to pursue its warranty claim. The appellate court reversed the summary judgment, remanding the case for trial on damages, while denying Ashley Square's attempt to include a strict liability claim due to procedural errors. The court acknowledged that an assignment of rights from Acrylic to Ashley Square established privity, enabling the warranty claim. The case highlights the complexities of warranty claims and procedural requirements in amending pleadings.

Legal Issues Addressed

Appeals and Reversal of Summary Judgment

Application: The appellate court reversed the summary judgment and remanded the case, allowing Ashley Square to pursue its warranty claim at trial.

Reasoning: The summary judgment was reversed, and the case was remanded for further proceedings, allowing Ashley Square to seek the necessary amendments in court.

Breach of Implied Warranty of Merchantability

Application: Despite Contractors Supply's claims, the appellate court determined it had implicitly warranted the materials under section 672.314 of the Florida Statutes.

Reasoning: The court established that under section 672.314 of the Florida Statutes, Contractors Supply qualified as a merchant because it dealt in the relevant goods, regardless of its claims of lack of experience with the specific stucco type.

Mechanic's Lien Enforcement

Application: Contractors Supply successfully enforced a mechanic's lien after Ashley Square withheld payment for defective stucco.

Reasoning: The trial court granted summary judgment for Contractors Supply on its lien claim and against Ashley Square on the counterclaim.

Privity of Contract for Warranty Claims

Application: Privity was established through an assignment of rights, allowing Ashley Square to pursue a warranty claim against Contractors Supply.

Reasoning: The existence of an assignment of rights from Acrylic to Ashley Square and Hillebrand confirmed privity for the warranty claim, despite legal precedents suggesting limitations on such claims without privity.

Procedural Requirements for Amending Pleadings

Application: Ashley Square's attempt to introduce a strict liability claim was denied due to procedural issues, underscoring the need for court permission for amendments.

Reasoning: Ashley Square's attempt to introduce a strict liability claim through an amended counterclaim was rejected due to procedural issues regarding court permission.