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Risner v. Regal Marine Industries, Inc.
8 F. Supp. 3d 959
S.D. Ohio
2014
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Background

  • Risner (Ohio) bought a 2010 Regal 3760 from Land N Sea (LNS), an authorized Regal dealer, after a settlement resolving disputes over a prior 2008 boat purchase. Regal manufactured and delivered the 2010 boat to LNS; plaintiff paid LNS (not Regal).
  • LNS had a forbearance agreement with its floor-plan lender (GE) and later experienced serious financial trouble; Regal knew of the forbearance but was not a party to LNS’s settlement with Risner.
  • After delivery Risner reported several issues (EVC joystick, incorrect upholstery color, A/C/generator, fuel gauge, instrument lights, freshwater pump, delays in MSO/title). Regal arranged dealer service (Hilltop Marine) and vendor (Volvo) repairs and offered remedies; some problems were repaired promptly, others required dealer scheduling which Risner did not always pursue.
  • Regal’s Limited Warranty promised repair/replace of defects for one year, excluded certain items (accessories, consequential damages) and contained a nonconspicuous disclaimer of implied warranties.
  • Risner sued Regal under Ohio law for breach of express and implied warranties, violations of the Ohio Consumer Sales Practices Act (CSPA), negligent misrepresentation, and intentional misrepresentation. After a bench trial, the court found for Regal on all claims.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Breach of express warranty (contract) Regal’s statements and warranty promises created express warranties; Regal failed to timely repair covered defects. Regal honored its Limited Warranty: authorized dealer repairs and Volvo fixed EVC; plaintiff refused to use dealer service for some items. Denied. Regal did not breach the Limited Warranty; repairs were made or reasonably offered and plaintiff denied Regal reasonable cure opportunities.
Breach of express warranty (advertising/tort) Regal’s website/menu and Rudholm’s statements induced purchase and formed express warranties. Statements were puffery or true; brochures not contractual promises. Denied. Sales claims were puffery/opinion and did not create express warranties; no evidence of factual inaccuracy.
Breach of implied warranty (merchantability) Boat was unmerchantable because of defects and failures; Regal liable as manufacturer. Plaintiff lacked privity with Regal; warranty disclaimed; issues were minor and curable via dealer. Denied. Privity lacking (sale was through dealer); plaintiff failed to prove the boat was unfit for ordinary use even assuming tort-based implied warranty.
Ohio CSPA violation Regal engaged in deceptive/unfair practices by steering plaintiff to LNS despite its financial problems, mishandling MSO/title, and failing to make plaintiff whole. Regal’s statements were not deceptive (puffery), it assisted with repairs and MSO, and did not mislead materially. Denied. Plaintiff did not prove a material, deceptive act connected to the 2010 purchase; Regal’s actions were not unfair or deceptive under the CSPA.
Negligent and intentional misrepresentation Regal misrepresented LNS’s reputation and made false promises about support and the boat’s conformity. Statements were opinions/puffery or truthful; plaintiff was sophisticated, knew risks, and relied on counsel; no justifiable reliance. Denied. Plaintiff failed to show false, material statements, reasonable reliance, or resulting pecuniary loss.

Key Cases Cited

  • Voytovich v. Bangor Punta Operations, Inc., 494 F.2d 1208 (6th Cir. 1974) (manufacturer may be sued for express warranty by purchaser who relied on it)
  • Rogers v. Toni Home Permanent Co., 147 N.E.2d 612 (Ohio 1958) (express warranty principles and reliance)
  • Curl v. Volkswagen of Am., Inc., 871 N.E.2d 1141 (Ohio 2007) (privity required for contract-based implied warranty claims)
  • Burr v. Bd. of Cnty. Comm'rs, 491 N.E.2d 1101 (Ohio 1986) (elements of fraud/intentional misrepresentation)
  • Einhorn v. Ford Motor Co., 548 N.E.2d 933 (Ohio 1990) (CSPA is remedial and to be liberally construed)
Read the full case

Case Details

Case Name: Risner v. Regal Marine Industries, Inc.
Court Name: District Court, S.D. Ohio
Date Published: Mar 27, 2014
Citation: 8 F. Supp. 3d 959
Docket Number: Case No. 1:11-cv-00191
Court Abbreviation: S.D. Ohio