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Scottsdale Insurance v. Deere & Co.

Citations: 115 F. Supp. 3d 1298; 92 Fed. R. Serv. 3d 285; 2015 U.S. Dist. LEXIS 91032; 2015 WL 4276108Docket: Case No. 14-1183-JTM

Court: District Court, D. Kansas; July 14, 2015; Federal District Court

Narrative Opinion Summary

This case involves a dispute over the destruction of a combine manufactured by Deere & Company, with Scottsdale Insurance Co., as subrogee for the owners, alleging breach of express and implied warranties due to a defect in the Emissions Control System (ECS). The insureds had purchased the combine with an express warranty, but the purchase order excluded implied warranties. The court was tasked with ruling on Deere's motion for summary judgment and a motion to exclude expert testimony from Raymond Thompson. The court granted summary judgment in favor of Deere regarding the implied warranty claim, citing the conspicuous exclusion of implied warranties in the purchase order. However, summary judgment was denied on the express warranty claim due to genuine factual disputes about the warranty terms and the alleged defect. Thompson's testimony was partially admissible, limited to the fire's origin, as his expertise did not extend to emissions systems. Despite deficiencies in Thompson’s expert report under Rule 26, the court found them justified or harmless, allowing his testimony. The case highlights issues of warranty exclusions, expert testimony admissibility, and the standards for summary judgment under federal law.

Legal Issues Addressed

Admissibility of Expert Testimony under Federal Rule of Evidence 702

Application: Thompson's testimony was deemed admissible only regarding the fire's origin, as his expertise did not extend to complex emissions systems.

Reasoning: Thompson is qualified to provide opinion testimony regarding the origin of the fire; however, his expertise does not extend to complex diesel emissions control systems, such as diesel particulate filters (DPFs).

Exclusion of Implied Warranties under Kansas Law

Application: The court found that the purchase order for the combines included a conspicuous exclusion of implied warranties, precluding Scottsdale from pursuing a breach of implied warranty claim.

Reasoning: The purchase order for the combines included a conspicuous exclusion of implied warranties, explicitly stating that implied warranties of merchantability and fitness were excluded unless specified in the John Deere warranty.

Express Warranty and Factual Disputes

Application: The court denied summary judgment on the express warranty claim due to factual disputes about the warranty terms and the alleged defect.

Reasoning: Summary judgment is inappropriate for Scottsdale’s express warranty claim regarding the Deere combine.

Summary Judgment Standard under Federal Rule of Civil Procedure 56

Application: Deere was granted summary judgment on the implied warranty claim as there were no genuine issues of material fact regarding the exclusion of implied warranties.

Reasoning: Summary judgment in favor of Deere on this claim is appropriate.

Violation of Rule 26(a)(2) and its Consequences

Application: The court found the deficiencies in Thompson's expert report were either justified or harmless, allowing his limited testimony.

Reasoning: The court found no indication of bad faith... suggesting any prejudice faced by Deere has been alleviated.