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Jack Rabbit Lines, Inc. v. Neoplan Coach Sales, Inc.

Citations: 1996 SD 80; 551 N.W.2d 18; 33 U.C.C. Rep. Serv. 2d (West) 840; 1996 S.D. LEXIS 84Docket: None

Court: South Dakota Supreme Court; July 2, 1996; South Dakota; State Supreme Court

Original Court Document: View Document

Narrative Opinion Summary

In this case, Neoplan Coach Sales, Inc. contested a jury's damage award of $187,750 to Jack Rabbit Lines, Inc. The dispute stemmed from Jack Rabbit's acquisition of two used buses from Neoplan, which were purportedly refurbished and compliant with weight regulations. However, Jack Rabbit faced mechanical problems and compliance issues, resulting in citations. Unable to return the buses, Jack Rabbit resold them at a loss and initiated legal action for breach of contract, warranty, negligence, and negligent misrepresentation, seeking rescission and damages. The jury, finding in favor of Jack Rabbit, awarded damages, albeit not in the full amount claimed. The appellate court upheld the decision, noting the trial court's correct application of South Dakota statutes, particularly SDCL 57A-2-711, which governs buyer remedies for non-conforming goods. Despite Neoplan's argument concerning jury instructions and an incomplete trial record, the court presumed the jury's general verdict was based on a valid theory. The decision emphasized the necessity for the appealing party to provide a comprehensive record to substantiate claims of error. The affirmation also reflected a concurrence on the result but not the reasoning, with a focus on the sufficiency of one valid theory among the multiple claims presented.

Legal Issues Addressed

Breach of Contract under South Dakota Law

Application: The court upheld the jury's award of damages based on Neoplan's failure to deliver goods conforming to the contract, as per South Dakota's statutory remedies.

Reasoning: The court affirmed the jury's award, referencing South Dakota law (SDCL 57A-2-711), which entitles buyers to remedies such as recovering damages if a seller fails to deliver goods that conform to the contract.

Burden of Proof and Record Completeness

Application: Neoplan's appeal was hindered by an incomplete transcript, which limited the appellate court's ability to assess potential errors.

Reasoning: The responsibility to create a complete record lies with the party claiming error, as established in several precedents.

General Verdict and Valid Legal Theories

Application: The general verdict in favor of Jack Rabbit was presumed valid because at least one proper issue was submitted to the jury.

Reasoning: Under state law, if a jury returns a general verdict with at least one valid theory presented, it is assumed that the verdict is based on that valid theory.

Jury Instruction on Breach of Warranty

Application: The jury was instructed on breach of warranty, allowing recovery for the difference in value of the buses accepted versus their warranted value, which Neoplan did not appeal.

Reasoning: Neoplan did not appeal the specific jury instruction related to breach of warranty, which allowed recovery for the difference in value of the buses accepted versus their warranted value.

Recovery of Damages and UCC Claims

Application: Jack Rabbit's recovery was limited due to the lack of notice regarding the resale of buses, affecting the calculation of damages.

Reasoning: Jack Rabbit sold buses at private sale but failed to notify Neoplan of its intention to resell, violating SDCL 57A-2-706.