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964 F. Supp. 2d 993
D. Minnesota
2013
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Background

  • Marvin Lumber and Cedar Co. bought painted aluminum lineals from Sapa for windows/doors for over a decade.
  • Coastal customers complained of paint adhesion loss, prompting costly repairs and litigation in 2010.
  • Sapa’s paint supplier Valspar is implicated via third-party claims for contribution/indemnity.
  • The court granted partial summary judgment on July 22, 2013, and now sets forth those rulings.
  • disputing whether Sapa provided a stand-alone Performance Warranty and whether attached Terms & Conditions apply to finished lineals.
  • The case involves multiple claims including breach of contract, warranties, fraud, and consumer-protection theories.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Sapa provided a separate Performance Warranty Marvin argues Sapa gave a ten-year performance warranty. Sapa contends only Valspar provided the performance warranty. Genuine issue of material fact; jury must decide.
Whether T&Cs apply to lineal purchases Marvin argues T&Cs do not apply to finished lineals. T&Cs potentially apply to lineals via FMCs. Jury to resolve applicability of T&Cs.
Whether T&Cs' warranties disclaimer and damages limitation are enforceable Disclaimer and cap cannot bar future-performance warranty or related damages. Sapa relies on UCC provisions to enforce disclaimers and limitations. Disclaimers of warranties invalid; damages-limitation invalid for future-performance warranty.
Whether Marvin’s claims were time-barred by statute of limitations Discovery and accrual rules may extend the period for future-performance warranties. Abstains from extending beyond four-year accrual window absent future-performance breach. If Performance Warranty exists, accrual depends on discovery; otherwise barred for pre-2004 goods.
Whether fraud and related tort claims survive under economic loss doctrine Claims distinct from contract/warranty may lie if independent duty exists. Economic loss doctrine bars tort theories arising from sale of goods; some claims duplicative of contract. Fraud/related torts limited; some claims barred; others survive only if independent-duty theory applies.

Key Cases Cited

  • Marvin Lumber & Cedar Co. v. PPG Indus., Inc., 401 F.3d 901 (8th Cir. 2005) (damages for future performance must remedy future defects; precludes simple cost-recovery damages)
  • Hydra-Mac, Inc. v. Onan Corp., 430 N.W.2d 846 (Minn. Ct. App. 1988) (warranty disclaimer post-dating representations may be invalid)
  • Minnesota Forest Prods., Inc. v. Ligna Mach., Inc., 17 F.Supp.2d 892 (D. Minn. 1998) (express warranty vs. disclaimer reconciliability governs enforceability)
  • Werwinski v. Ford Motor Co., 286 F.3d 661 (3d Cir. 2002) (economic loss doctrine nuances; fraud exception in some jurisdictions)
  • Highway Sales, Inc. v. Blue Bird Corp., 559 F.3d 782 (8th Cir. 2009) (accrual for warranties of future performance; discovery rule)
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Case Details

Case Name: Marvin Lumber & Cedar Co. v. Sapa Extrusions, Inc.
Court Name: District Court, D. Minnesota
Date Published: Aug 2, 2013
Citations: 964 F. Supp. 2d 993; 2013 WL 3989669; Civ. No. 10-3881 (RHK/LIB)
Docket Number: Civ. No. 10-3881 (RHK/LIB)
Court Abbreviation: D. Minnesota
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