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Mountaineer Contractors v. MOUNTAIN STATE

Citations: 268 S.E.2d 886; 165 W. Va. 292Docket: 14067

Court: West Virginia Supreme Court; July 10, 1980; West Virginia; State Supreme Court

Narrative Opinion Summary

In a breach of warranty action, Mountain State Mack, Inc. appealed a Circuit Court decision that denied its motion to set aside a jury verdict favoring Mountaineer Contractors, Inc. The case involved the sale of used Caterpillar bulldozers and alleged breaches of express and implied warranties. Mountaineer Contractors claimed the equipment was defective upon delivery, despite oral assurances of repair by the seller's representative. After a jury awarded damages to Mountaineer Contractors, Mountain State Mack sought to overturn the verdict, arguing that implied warranties were waived under W.Va. Code 46-2-316(3)(b) due to a pre-sale inspection. The Supreme Court of Appeals of West Virginia affirmed the lower court's ruling, finding sufficient evidence to support the jury's decision that the defects were not discoverable during the inspection. The court also upheld the jury's consideration of oral express warranties related to repairs and an alternative measure of damages due to market conditions, aligning with the Uniform Commercial Code's intent to fully compensate the aggrieved party. The decision underscored that jury instructions regarding damages were proper, and no prejudice resulted from considering claims related to equipment not covered by the contract. Ultimately, the court confirmed the verdict, maintaining the Circuit Court's judgment in favor of Mountaineer Contractors.

Legal Issues Addressed

Express Warranties and Oral Representations

Application: The court allowed the jury to consider oral assurances of repairs as part of express warranties, despite a written agreement that purported to exclude oral representations.

Reasoning: The court found that the security agreement, while stating that no oral agreement would be binding, did not preclude the jury from considering Mr. Young's oral representations regarding repairs after use.

Implied Warranties under the Uniform Commercial Code

Application: The court assessed whether implied warranties were waived due to pre-sale inspection and determined that the issue was appropriately submitted to the jury due to conflicting testimonies about the extent of the inspection.

Reasoning: The appellant claimed that the implied warranties concerning the sale of four bulldozers were waived due to the appellee's representative's pre-sale examination of the equipment, as per W.Va. Code 46-2-316(3)(b).

Jury Instructions on Damages

Application: The court found no error in jury instructions regarding damages, which included costs for parts, labor, and loss of use, provided that the plaintiff demonstrated reasonable diligence in repairs.

Reasoning: The jury was also instructed on the types of damages they could consider if they ruled for the plaintiff, which include costs for parts, labor for repairs, and loss of use of the equipment, provided that the plaintiff demonstrated reasonable diligence in repairs.

Measure of Damages in Breach of Warranty

Application: The court upheld an alternative measure of damages due to special circumstances in the market, aligning with the Uniform Commercial Code's intent.

Reasoning: The court recognized that special circumstances, particularly during a coal boom when equipment was scarce and inflated in price, justified using an alternative measure of damages.