Premium Finishes, Incorporated (“PFI”) purchased a resin from Union Carbide Chemicals & Plastics Company, Incorporated (“Carbide”) in order to manufacture a paint that PFI then sold to Cooper Power Systems, Incorporated (“Cooper”). - Cooper incurred substantial costs when the paint failed after it was used to coat thousands of electrical transformers. Cooper sued PFI and Carbide to recover its costs alleging several state law theories. PFI cross-claimed against Carbide for indemnity and filed a separate action alleging its own state law theories of recovery. After the actions were consolidated, the district court granted summary judgment to Carbide and certified that judgment as final under Rule 54(b) of the Federal Rules of Civil Procedure.
I
BACKGROUND
We take the facts in the light most favorable to PFI and Cooper. Carbide manufactures resins that are used by producers of paints and protective coating systems such as PFI. As early as 1959, Carbide and Ron Savin, the owner of PFI, developed a working relationship. PFI would buy a large quantity of resins from Carbide on an annual basis. Carbide’s technical personnel assisted PFI in developing a coating called Weather-cote-T by providing start-up formulas and technical assistance. Subsequently, in 1980, Carbide introduced a new resin, VYES, to the market. Carbide promoted VYES to its customers, including Savin. It represented that VYES could be used to replace conventional vinyl resins and that the new resin was suitable for all kinds of weather. Beginning in 1982 PFI began incorporating VYES into Weathercote-T. Carbide was aware that PFI’s customers used Weathercote-T to coat electrical transformers. Carbide maintained a relationship with PFI by providing technical assistance and formula recommendations; Carbide also provided assistance to PFI when it had a temperature problem with the coating. In'1984 PFI received an odorous, discolored batch of VYES and returned the shipment. Carbide assured PFI that nothing was wrong with VYES and that the shipment was an aberration. Carbide assured Savin, in response to his concerns about the field equipment that had been painted with Weathercote-T, that VYES met Carbide’s standards. PFI never passed along to Cooper Carbide’s reassurances and representations of VYES’ quality.
Cooper was one of PFI’s customers. Cooper painted thousands of electrical transformers with Weathercote-T. In 1986 or 1987 it began experiencing numerous field failures and learned that Weathercote-T contained VYES. The paint failed in the field apparently because it could not withstand high temperatures. The paint blistered and delaminated, thereby exposing the transformers to corrosion by the elements. Cooper incurred high costs in correcting the problem by sandblasting and repainting the equipment. Cooper says that, before the field failures, it had continuously sought assurances from PFI that PFI would inform Cooper of any changes in the formulation of Weathercote-T. PFI assured Cooper that there were no such changes. PFI never disclosed any change because it was not informed of any problems with VYES by Carbide. Carbide, in fact, had been struggling with a color instability problem, the equivalent of a thermal instability problem. In early 1984, over 94% of the most recent batch of VYES failed Carbide’s minimum product specifications. Carbide never informed any of its customers of the problems it was having. It did not disclose any problem in its 1980, 1984 or 1985 product literature.
Savin met with the representatives of another paint-producing company in 1989. He learned from them that they had been experiencing the same problems with their coatings. One of the representatives also told Savin that a Carbide representative had admitted to him that there was a problem with VYES. Carbide, in response to Savin’s inquiry, continued to deny any problem. Carbide asserts that there is no evidence that the' failures in VYES caused the delamination and blistering of Weathereote-T.
Carbide and PFI eventually agreed to discuss a settlement. They entered into an agreement tolling the statute of limitations for four months. PFI then filed its complaint in the United States District Court for the Southern District of Ohio, alleging negligence and breach of contract and warranty. On October 8, 1991, PFI entered into a second tolling agreement with Carbide and voluntarily dismissed its claims. PFI refiled on
II
DISCUSSION
A. Cooper’s Claims Against Carbide
1. Breach of contract and warranty
Cooper admits that it never dealt directly with Carbide and that it was never a party to any contract with Carbide. Cooper, therefore, is claiming that it was a third-party beneficiary to the contract between PFI and Carbide.
The PFI-Carbide contract was clearly not entered into for the benefit of Cooper. Cooper’s arguments to the contrary all boil down to an assertion that Carbide knew that PFI was selHng paint containing VYES to Cooper or companies like Cooper. Yet the fact that a seller knows that an intermediate buyer of its products wiH immediately resell the product is not sufficient to make the ultimate buyer an intended beneficiary of the original sales contract. Commonwealth Propane Co. v. Petrosol Int’l, Inc.,
2. Tort Claims
The district court held that Cooper’s tort claims were barred by the “economic loss” doctrine. In Wisconsin, “a commercial purchaser of a product cannot recover solely economic losses from the manufacturer under negligence or strict liability theories.” Sunnyslope Grading, Inc. v. Miller, Bradford & Risberg, Inc.,
Cooper insists that we have misread Wisconsin law; it urges that the Supreme Court of Wisconsin would hold that privity is an essential element of the economic loss doctrine. It notes that there was privity in Sunnyslope and that the Court of Appeals of Wisconsin has indicated that it does not believe that we have predicted correctly the course that the state’s highest court will take when presented squarely with the issue. See Hap’s Aerial Enters., Inc. v. General Aviation Corp.,
Cooper next points out that its complaint seeks to recover, among other things, damages for diminished goodwill and business reputation. Cooper then cites to a snippet in Miller where we juxtaposed commercial loss with “damage to person, property, or reputation.”
Cooper’s final argument to escape the confines of commercial law is to assert that its misrepresentation claims, though arising in tort, are an exception to the economic loss doctrine. This court, however, has already predicted that Wisconsin would not allow a negligence or strict liability misrepresentation claim seeking to recover economic damages. See Badger Pharmacal, Inc. v. Colgate-Palmolive Co.,
B. PFI’s Claims Against Carbide
1. Breach of contract and warranty
The district court held that PFI’s contract and warranty claims were barred by Ohio’s statute of limitations.
Pursuant to Fed.R.Civ.P. 41(a)(1), plaintiff [PFI] and defendant [Carbide], by and through counsel, hereby stipulate that the within action is dismissed, at plaintiffs costs, without prejudice to refiling in federal court within the time provided therefor by Section 2305.19 of the Ohio Revised Code.
R.97 at 30. Section 2305.19 of the Ohio Revised Code provides:
In an action commenced, ... if in due time a judgment for the plaintiff is reversed, or if the plaintiff fails otherwise than upon the merits, and the time limited for the commencement of such action at the date of reversal or failure has expired, the plaintiff ... may commence a new action within one year after such date.
Ohio Rev.Code Ann. § 2305.19.
PFI then filed this action in September 1992, within one year of the stipulation of voluntary dismissal. Nevertheless, the district court held that PFI’s contract claims were barred by Ohio’s U.C.C. statute of limitations, which provides:
Where an action commenced within the time limited by division (A) of this section is so terminated as to leave available a remedy by another action for the same breach, such other action may be commenced after the expiration of the time limited and within six months after the termination of the first action unless the termination resulted from voluntary discontinuance ....
Ohio Rev.Code Anm § 1302.98(C). The district court held, and Carbide insists on appeal, that PFI’s claims are barred because it voluntarily dismissed the first action and because, in any event, PFI did not refile within six months of the dismissal. Carbide asserts that the stipulation entered into by the parties was not explicit enough to preempt § 1302.98(C). The district court agreed with PFI and held that, if parties want to preempt § 1302.98(C), “they must do so in specific terms.” R.97 at 32.
We cannot agree. Parties can vary the effect of many U.C.C. provisions, including the provisions contained in § 1302, by agreement. Ohio Rev.Code Ann. § 1301.02(C); see Miles v. N.J. Motors, Inc.,
We do agree with the district court, however, that Carbide did not extend any warranties to PFI of future performance. PFI contends that its action did not accrue until 1986 or 1987 when it learned of the field failures. It relies on § 1302.98(B): “A breach of warranty occurs when tender of delivery is made, except that where a warranty explicitly extends to future perfor
2. Indemnity
When Cooper sued PFI, PFI cross-claimed against Carbide for indemnification. Insofar as PFI’s indemnity claim sounds in tort, it is barred by the economic loss doctrine.
There is, moreover, a more fundamental problem with PFI’s implied rights. The economic loss doctrine dictates that implied indemnity claims of the sort claimed by PFI have no place in a suit for commercial losses governed by the U.C.C.
We express no opinion on the damages that may be available to PFI under its breach of contract and warranty claims, but we note that the U.C.C. allows for the recov
Conclusion
For the foregoing reasons, the judgment of the district court is affirmed in part, reversed in part and remanded for proceedings consistent with this opinion. Cooper’s motion for certification to the Supreme Court of Wisconsin is denied.
AFFIRMED in part, Reversed in part and REMANDED.
Notes
. At the request of the court, the parties submitted supplemental memoranda on the validity of the district court’s certification of this appeal under Federal Rule of Civil Procedure 54(b). After reviewing these submissions, we are satisfied that the district court acted well within its discretion in granting certification. As required by Rule 54(b), this action involves either multiple claims or parties; indeed, this case involves both. All the claims have been resolved with respect to a party (Carbide); Cooper and PFI are the only parties left in the district court. Having resolved all the claims against one party, the court was permitted to certify that judgment for immediate appeal. See National Metalcrafters, Div. of Keystone Consol. Indus. v. McNeil,
Before directing the entry of judgment, the district court expressly found, as Rule 54(b) requires, that there was no just reason for delay. Although the court did not explicitly set forth its reasons for that finding in its order, its reasons are apparent from the record insofar as the court incorporated by reference the rationale of Cooper's motion in the Rule 54(b) order. See United States v. Ettrick Wood Prods.,
The Supreme Court has explained that "the decision to certify [is] with good reason left to the sound judicial discretion of the district court.” Curtiss-Wright Corp. v. General Elec. Co.,
. Carbide asserts that Ohio law should govern Cooper’s claim because PFI entered into the contract with Carbide in Ohio, ordered VYES from Ohio, received VYES in Ohio and used VYES in its manufacturing process in Ohio. Cooper concedes that Ohio law governs if there is a conflict between Ohio and Wisconsin law. Cooper does not perceive any such conflict.
. We decline Cooper’s request to certify the issue al Cycle, Inc. v. Savoy Reinsurance Co. Ltd., 938 to the Supreme Court of Wisconsin. See National F.2d 61, 64 (7th Cir.1991).
. See Huron Tool & Eng’g Co. v. Precision Consulting Servs., Inc.,
. Cooper invites our attention to D’Huyvetter v. A.O. Smith Harvestore Products,
The defendant argues that the plaintiffs' claims in nuisance, deceit, strict liability for misrepresentation, and negligent misrepresentation are barred because the plaintiffs have not suffered physical harm to property. Because we conclude that the plaintiffs have alleged physical harm to property rather than solely economic loss, the defendant’s argument has no merit.
Northridge Co.,
.The parties agree that Ohio law applies.
. Cf. Lawyers Cooperative Publishing Co. v. Muething,
. See Peoples’ Democratic Republic of Yemen v. Goodpasture, Inc.,
