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Landmark Structures, Inc. v. F.E. Holmes & Sons Construction Co.

Citations: 552 N.E.2d 1336; 195 Ill. App. 3d 1036; 142 Ill. Dec. 595; 1990 Ill. App. LEXIS 512Docket: 5-88-0787

Court: Appellate Court of Illinois; April 6, 1990; Illinois; State Appellate Court

Narrative Opinion Summary

This case involves a contractual dispute between Landmark Structures, Inc. and F.E. Holmes and Sons Construction Company, Inc. Landmark sued Holmes for a contract balance related to prefabricated wall panels, while Holmes counterclaimed that the panels were nonconforming, breaching the implied warranty of merchantability under UCC Section 2-314. After a bench trial, the court ruled in favor of Holmes, dismissing Landmark's complaint and awarding Holmes damages. Landmark appealed, raising issues concerning warranty disclaimers, remedy limitations under UCC Sections 2-316 and 2-719, and the sufficiency of evidence for damages. Landmark's contract included a warranty disclaimer, but the court found no mutual agreement to disclaim warranties, as Holmes was unaware of such terms. The court also upheld the admissibility of summary evidence, ruling that a proper foundation was established. Holmes received damages for siding replacement and other related costs, which the court found supported by evidence. The appellate court deferred to the trial court's findings as they were not against the manifest weight of the evidence, affirming the trial court's decision.

Legal Issues Addressed

Admissibility of Summary Evidence

Application: The court held that summary exhibits were admissible as proper foundation was established and the documents were available in court, consistent with precedents like In re Marriage of Westcott.

Reasoning: A trial court does not abuse its discretion in admitting summary evidence when a proper foundation is established. Competent witnesses may testify to facts derived from voluminous original documents if those documents are available in court and can be summarized effectively, as demonstrated in In re Marriage of Westcott.

Damages for Breach of Implied Warranty

Application: The trial court awarded damages for breach of the implied warranty of merchantability related to siding issues, rejecting Landmark's claim that non-siding-related damages were improperly awarded.

Reasoning: Landmark challenged the award of non-siding-related damages, amounting to $42,408.33, arguing that since the trial court only found a breach related to the implied warranty of merchantability concerning the siding, non-siding-related damages were improperly awarded.

Implied Warranty of Merchantability under UCC Section 2-314

Application: The court ruled that the siding did not meet the merchantability standards of being fit for ordinary use, thus finding the siding defective.

Reasoning: The trial court concluded there was no agreement between Landmark and Holmes to disclaim warranties related to the siding in question. It found that the siding did not meet the merchantability standards outlined in section 2-314 of the Uniform Commercial Code, as it was unfit for ordinary use, inconsistent in quality, and therefore defective.

Warranty Disclaimer under UCC Section 2-316

Application: The court found no mutual agreement to disclaim warranties, despite Landmark's assertions, due to a lack of evidence that Holmes was aware of any warranty disclaimer at the time of contract execution.

Reasoning: The trial court could reasonably conclude that Holmes' decision not to bill Landmark did not signify a belief in a remedy of siding replacement. The court could also determine that Holmes lacked knowledge of any warranty disclaimer at the time of contract execution.