CWF Hamilton and Co LTD v. Schaefer Group Inc
3:10-cv-00339
S.D. OhioApr 2, 2012Background
- Hamilton Jet, a New Zealand company, sued Schaefer in a diversity action in the SD Ohio seeking multiple warranty claims; the case proceeded on Schaefer's partial summary judgment motion limited to breach of original warranties.
- In 2006 Hamilton Jet purchased an electric aluminum reverberatory furnace from Schaefer for $238,166.80 under a one-year express warranty.
- The warranty commenced when the furnace was commissioned (around January 15, 2007) and problems were reported by Hamilton Jet in January 2008 within the warranty period.
- The parties attempted repair; Schaefer sent a representative to New Zealand, but inspection occurred after the warranty period.
- The proposed repair involved a new furnace base with relining and a “hot swap,” with Schaefer charging about $75,725 for reline work; Schaefer argues Hamilton Jet did not give proper notice or opportunity to cure.
- The court, applying Ohio law in a diversity action, found a genuine issue of material fact about whether Hamilton Jet properly notified Schaefer within the warranty period, so summary judgment for Schaefer on Count I was denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Hamilton Jet properly notified Schaefer of the breach within the warranty period | Hamilton Jet gave notice within the one-year period | Hamilton Jet did not provide proper notice or opportunity to cure | Genuine issue of material fact remains; summary judgment denied. |
| Whether Hamilton Jet preserved its claim by giving Schaefer an opportunity to repair | Notice and opportunity to cure were provided | No proper cure opportunity established | Genuine issue of material fact remains; summary judgment denied. |
Key Cases Cited
- Adickes v. S.H. Kress & Co., 398 U.S. 144 (U.S. 1970) (standard for summary judgment burden and discovery)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S. 1986) (genuine issue of material fact must exist; evidence viewed in light most favorable to nonmovant)
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (preliminary burden on moving party to show absence of genuine dispute)
- Matsushita Electric Industrial Co. v. Zenith Radio Corp., 475 U.S. 574 (U.S. 1986) (mere metaphysical doubt insufficient to defeat summary judgment)
- Liberty Lobby v. Anderson, 477 U.S. 242 (U.S. 1986) (standard for assessing evidence on summary judgment)
- In re Hartsel v. Keys, 87 F.3d 795 (6th Cir. 1996) (court’s role in evaluating evidence on summary judgment)
- Street v. J.C. Bradford & Co., 886 F.2d 1472 (6th Cir. 1989) (opponent must present specific evidence to counter movant)
- Abele v. Bayliner Marine Corp., 11 F.Supp.2d 955 (N.D. Ohio 1997) (claims require proof of nonconformity, reasonable cure, and failure to repair)
- AGF, Inc. v. Great Lakes Heat Treating Co., 51 Ohio St.3d 177 (Ohio 1990) (notice of breach need not be a magic or specific form under Ohio law)
- Caterpillar, Inc. v. Usinor Industeel, 393 F.Supp.2d 659 (N.D. Ill. 2005) (buyer must give seller notice of lack of conformity under CISG)
