Belden Inc. v. American Electronic Components, Inc.

885 N.E.2d 751, 66 U.C.C. Rep. Serv. 2d (West) 399, 2008 Ind. App. LEXIS 967, 2008 WL 1990823
CourtIndiana Court of Appeals
DecidedMay 9, 2008
Docket89A01-0709-CV-447
StatusPublished
Cited by3 cases

This text of 885 N.E.2d 751 (Belden Inc. v. American Electronic Components, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Belden Inc. v. American Electronic Components, Inc., 885 N.E.2d 751, 66 U.C.C. Rep. Serv. 2d (West) 399, 2008 Ind. App. LEXIS 967, 2008 WL 1990823 (Ind. Ct. App. 2008).

Opinion

OPINION

BARNES, Judge.

Case Summary

Belden, Inc., and Belden Wire & Cable Company (collectively “Belden”) appeal the trial court’s granting of partial summary judgment in favor of American Electronic Components, Inc. (“AEC”). We' affirm.

Issues

Belden raises four issues, which we consolidate and restate as:

I. whether the limitation on damages on the back of Belden’s order acknowledgment applies to the parties’ contract; and
II. whether Belden created an express warranty based on its prior assertions to AEC.

Facts 1

Belden manufactures wire, and AEC manufactures automobile sensors. Since *754 1989, AEC, in repeated transactions, has purchased wire from Belden to use in its sensors.

In 1996 and 1997, Belden sought to comply with AEC’s quality control program and provided detailed information to AEC regarding the materials it used to manufacture its wire. In its assurances, Belden indicated that it would use insulation from Quantum Chemical Corp. (“Quantum”). In June 2003, however, Belden began using insulation supplied by Dow Chemical Company (“Dow”). The Dow insulation had different physical properties than the insulation provided by Quantum.

In October 2003, Belden sold AEC wire manufactured with the Dow insulation. AEC used this wire to make its sensors, and the insulation ultimately cracked. Chrysler had installed AEC’s sensors containing the faulty wire in approximately 18,000 vehicles. Chrysler recalled 14,000 vehicles and repaired the remaining 4,000 prior to sale. Pursuant to an agreement with Chrysler, AEC is required to reimburse Chrysler for expenses associated with the recall.

In 2004, AEC filed a complaint against Belden seeking consequential damages for the changes in the insulation that resulted in the recall. In 2005, AEC filed a partial motion for summary judgment. In 2006, Belden responded and filed a cross-motion for summary judgment. The motions for summary judgment were “limited to the issues of duty and limitation of remedy and [did] not present any issues as to breach, causation, or damages.” Appellant’s App. p. 14. On July 6, 2006, the trial court held a hearing on the parties’ motions for partial summary judgment. On July 6, 2007, the trial court entered an order granting AEC’s motion for partial summary judgment and denying Belden’s cross-motion. Belden now appeals.

Analysis

In reviewing a trial court’s decision to grant or deny summary judgment, we apply the same standard as the trial court. Keaton & Keaton v. Keaton, 842 N.E.2d 816, 819 (Ind.2006). We decide whether there are genuine issues of material fact and whether the moving party is entitled to judgment as a matter of law. Id. Our review is limited to those materials designated to the trial court. Sees v. Bank One, Indiana, N.A., 839 N.E.2d 154, 160 (Ind.2005) (citing Ind. Trial Rule 56(H)). We accept as true those facts alleged by the non-moving party, construe the evidence in favor of the non-moving party, and resolve all doubts against the moving party. Id. When considering cross-motions for summary judgment, the trial court is required to consider each motion separately, construing the facts most favorably to the non-moving party in each instance. Id. “We will affirm a grant of summary judgment if it can be sustained on any theory or basis in the record.” Cincinnati Ins. Co. v. American Alternative Ins. Corp., 866 N.E.2d 326, 329 (Ind.Ct.App.2007), trans. denied.

I. Battle of the Forms

Belden first argues that the boilerplate language on the back of its “customer order acknowledgement” limited the damages available to AEC. Appellant’s App. p. 94. The parties were involved in repeated transactions over many years. Prior to 1998, AEC sent all purchase orders by mail on a form that contained AEC’s terms and conditions on the back. Beginning in 1998, AEC sent its purchase orders to Belden via fax. The faxed pur *755 chase orders only included the front of the form and omitted the terms and conditions printed on the back of the form.

On October 17, 2003, AEC sent Belden a purchase order containing the quantity, price, shipment date, and product specifications. Belden responded on October 22, 2003, with its order acknowledgement. The order acknowledgment referenced AEC’s specific requests and contained boilerplate language on the back. At issue here is the language purporting to limit Belden’s liability for special, indirect, incidental, or consequential damages. See id. at 95. The back of order acknowledgment also stated:

1.2 Where this Agreement is found to be an acknowledgment, if such acknowledgment constitutes an acceptance of an offer such acceptance is expressly made conditional upon Buyer’s assent solely to the terms of such acknowledgment, and acceptance of any part of Product(s) delivered by Company shall be deemed to constitute such assent by Buyer....

Id. Based on these exchanges, the parties dispute whether the limitation on damages is a term of their agreement. 2

We start our analysis with Section 2-207 of the Uniform Commercial Code (“UCC”), 3 which provides:

(1)A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms.
(2) The additional terms are to be construed as proposals for addition to the contract. Between merchants such terms become part of the contract unless:
(a) the offer expressly limits acceptance to the terms of the offer;
(b) they materially alter it; or
(c) notification of objection to them has already been given or is given within a reasonable time after notice of them is received.
(3) Conduct by both parties which recognizes the existence of a contract is sufficient to establish a contract for sale although the writings of the parties do not otherwise establish a contract. In such case the terms of the particular contract consist of those terms on which the writings of the parties agree, together with any supplementary terms incorporated under any other provisions of this Act.

The parties disagree as to whether Section 2-207(2) or Section 2-207(3) applies. In Uniroyal, Inc., v.

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885 N.E.2d 751, 66 U.C.C. Rep. Serv. 2d (West) 399, 2008 Ind. App. LEXIS 967, 2008 WL 1990823, Counsel Stack Legal Research, https://law.counselstack.com/opinion/belden-inc-v-american-electronic-components-inc-indctapp-2008.