Shows v. MAN ENGINES & COMPONENTS, INC.
364 S.W.3d 348
Tex. App.2012Background
- Shows bought a 50-foot yacht in 2002 knowing engines were used; engines installed in 2000 by Man Germany; major engine failures occurred in 2004 and 2005 allegedly due to defective valves; suit filed in 2006 against Man Germany and Man Engines for negligence, DTPA, warranties, and misrepresentation; jury found liability only for breach of implied warranty of merchantability and damages of the 2005 engine replacement; trial court granted JNOV and take-nothing judgment; Shows seeks judgment nihil dicit and appeals the JNOV ruling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May a subsequent buyer sue the manufacturer for implied warranty against defects when the goods left manufacturer's possession in the first sale? | Shows argues downstream purchaser can sue manufacturer. | Man Parties rely on Chaq Oil rule barring used-goods buyers. | Yes; downstream buyer may sue manufacturer for breach of implied warranty. |
| Is privity of contract required for a claim of implied warranty against a manufacturer? | Privity not required per Nobility Homes. | Privity required. | No privity required; JNOV error to grant on this ground. |
| Did the disclaimer by the first purchaser bar Shows's claim? | Disclaimer not properly pleaded or tried. | Disclaimer defense pleaded via Exhibit 1. | disclaimer defense was waived and cannot sustain JNOV on this ground. |
| Did the trial court err in relying on the statute of limitations against the warranty claim? | Not a limitations issue; unsupported by pleadings. | Expired warranty argument. | Court did not rely on limitations ground; not dispositive; crosses lack merit. |
Key Cases Cited
- Nobility Homes of Texas, Inc. v. Shivers, 557 S.W.2d 77 (Texas 1977) (downstream purchaser may sue manufacturer for implied warranty without privity)
- Hargett v. Midas Int'l Corp., 508 So. 2d 663 (Miss. 1987) (subsequent buyer can sue manufacturer for implied warranty)
- Perry v. Lawson Ford Tractor Co., 613 P.2d 458 (Okla. 1980) (subsequent buyer may sue manufacturer for implied warranty)
- Western Equipment Co. v. Sheridan Iron Works, Inc., 605 P.2d 806 (Wyo. 1980) (subsequent buyer may sue manufacturer for implied warranty)
- Chaq Oil Co. v. Gardner Machine Corp., 500 S.W.2d 877 (Tex.App.-Houston [14th Dist.] 1973) (Chaq Oil rule on used goods and implied warranty)