Vanessa Mathews v. REV Recreation Group, Inc.
931 F.3d 619
7th Cir.2019Background
- Vanessa and Randy Mathews bought a Holiday Rambler Presidential RV on May 7, 2014; it came with a manufacturer limited warranty (express and implied) lasting one year and requiring notice to REV or an authorized dealer within five days of discovering a defect.
- The RV had numerous defects soon after purchase (electrical issues, refrigerator, leveling system, shower leak, TV/DVD problems, slide cable), and the Mathews sought repairs from the dealer and from REV-authorized repairers; some repairs occurred without REV being notified.
- REV repaired the RV at its factory store on at least two occasions and issued a ‘‘goodwill’’ extended warranty for workmanship (explicitly excluding extension of the limited warranty); REV provided a copy of the limited warranty in May 2015.
- After REV returned the RV in June 2015, the Mathews did not permit further authorized repairs; their attorney sent a breach-of-warranty letter in July 2015 and they later sued alleging breaches of express and implied warranties, and claims under the Indiana Deceptive Consumer Sales Act and Magnuson–Moss Warranty Act.
- The district court granted summary judgment for REV, finding REV was not given a reasonable opportunity to cure, the warranty limitations were not unconscionable, and therefore the statutory claims failed; the Mathews appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of express warranty — did REV fail to honor the warranty? | Mathews: warranty failed its essential purpose because defects persisted and REV effectively didn’t cure. | REV: it repaired defects presented and was not given a reasonable opportunity to cure after June 2015. | Held: No breach; buyer did not give REV a reasonable opportunity to cure, so remedy did not fail its essential purpose. |
| Breach of implied warranty of merchantability | Mathews: RV was not merchantable at sale. | REV: same cure-opportunity defense; warranty procedures apply. | Held: No breach; failure to permit reasonable cure is fatal to claim. |
| Unconscionability of warranty terms (no hard copy at sale; one-year limitation) | Mathews: terms unconscionable because no hard copy given and one-year limit too short for latent defects. | REV: Mathews knew and used the warranty; one-year limit is a bargained term and not per se unconscionable. | Held: Terms not unconscionable; Mathews relied on warranty benefits and latent-defect risk does not alone make term unconscionable. |
| Statutory claims under IDCSA and Magnuson–Moss | Mathews: statutory violations flow from warranty breaches and deceptive practices. | REV: statutory claims fail if warranty claims fail. | Held: Statutory claims fail because plaintiffs did not establish warranty breaches or unconscionability. |
Key Cases Cited
- Peltz Const. Co. v. Dunham, 436 N.E.2d 892 (Ind. Ct. App. 1982) (elements for breach of warranty under Indiana law)
- Perry v. Gulf Stream Coach, Inc., 814 N.E.2d 634 (Ind. Ct. App. 2004) (discussing warranty remedies and buyer obligations)
- Anderson v. Gulf Stream Coach, Inc., 662 F.3d 775 (7th Cir. 2011) (buyer must give seller reasonable opportunity to cure when warranty terms impose that requirement)
- Aamco Transmissions v. Air Sys., Inc., 459 N.E.2d 1215 (Ind. Ct. App. 1984) (requiring opportunity to cure under warranty terms)
- General Motors Corp. v. Sheets, 818 N.E.2d 49 (Ind. Ct. App. 2004) (Lemon Law context: reasonable number of repair attempts defined)
- Weaver v. Am. Oil Co., 276 N.E.2d 144 (Ind. 1971) (standard for unconscionability of contracts)
- United States v. Dunkel, 927 F.2d 955 (7th Cir. 1991) (failure to develop argument forfeits the claim)
- United States v. Giovannetti, 919 F.2d 1223 (7th Cir. 1990) (litigant who fails to support a point with authority forfeits it)
