Bergquist v. MacKay Engines, Inc.

538 N.W.2d 655, 28 U.C.C. Rep. Serv. 2d (West) 1168, 1995 Iowa App. LEXIS 88, 1995 WL 601399
CourtCourt of Appeals of Iowa
DecidedJune 27, 1995
Docket94-464
StatusPublished
Cited by10 cases

This text of 538 N.W.2d 655 (Bergquist v. MacKay Engines, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bergquist v. MacKay Engines, Inc., 538 N.W.2d 655, 28 U.C.C. Rep. Serv. 2d (West) 1168, 1995 Iowa App. LEXIS 88, 1995 WL 601399 (iowactapp 1995).

Opinion

KEEFE, Senior Judge.

The plaintiff, Bob Bergquist, is a self-employed automobile mechanic and parts dealer specializing in four-wheel drive repair. Bergquist’s hobby is mud racing, which involves driving a four-wheel drive vehicle through a specially constructed mud pit. He testified his participation in mud racing has helped advertise his business of selling parts for four-wheel drive vehicles.

In 1990, Bergquist planned to move up to a different class in mud racing. He purchased an engine from Marvin Helling. Helling had purchased the engine from Bob Cullen. Cullen had modified the engine for racing purposes by taking a stock Chevrolet 454 cubic inch engine and boring it out to accommodate larger pistons. Cullen added light-weight aluminum pistons and rods, and a high-rise intake. The engine, as originally built, was externally balanced by a weighted torsional damper, also known as a harmonic balancer. A torsional damper is a circular steel sleeve attached to the crankshaft and is surrounded by a rubber ring, which in turn is surrounded by another steel ring. The purpose of a torsional damper is to limit the vibration of the engine.

Cullen internally balanced the engine by adding a heavy metal to the crankshaft. Because the engine was internally balanced, the external balancing agent of the weighted torsional damper was no longer needed and it was discarded. Cullen placed a 396 torsional damper on the engine. The new torsional damper was not weighted, and thus, did not disturb the balance of the internally balanced engine.

After purchasing the engine, Bergquist took the engine to John Kirchner, doing business as Kirchner’s Garage, to have the engine cleaned and inspected. Kirchner was aware Bergquist intended to use the engine for racing. Bergquist asked Kirchner to replace the aluminum pistons with heavy-duty ones. This change required the engine to be rebalanced. Kirchner sent the engine to Mackay Engines, Inc. for balancing because it did not have the necessary equipment itself. Kirchner testified he could not recall whether he had told Mackay that the owner intended to use the engine for racing. Jim Mackay, owner of Mackay’s Engines, testified he was not told of the intended use for the engine. Mackay balanced the engine and returned it to Kirchner.

Bergquist picked up his engine from Kirchner on July 21, 1990. When he received the engine, holes had been drilled in the outer sleeve of the torsional damper. There had been no holes in the torsional damper when he delivered it to Kirchner. Bergquist installed the engine into his racing vehicle later that same day. He started the engine, adjusted the timing and set the carburetor. When he revved up the throttle for the first time, the outer sleeve of the torsional damper blew apart and propelled shrapnel into Bergquist’s leg. Following the accident, Bergquist was unable to work for three months. He was ultimately allowed to return to work on a limited basis.

Bergquist filed a petition against Mackay Engines and Kirchner alleging negligence, breach of implied warranty of fitness, breach of implied warranty of merchantability, and strict liability. Plaintiff claimed damages for past medical expenses, lost income, loss of body function, and pain and suffering. He later voluntarily dismissed his petition against Kirchner.

At trial, all parties agreed the holes drilled into the torsional damper created a dangerous condition. Mackay, Kirchner and Bergquist all denied placing the holes in the torsional damper. Mackay and Kirchner also denied that the torsional damper which was presented at trial was the one they had previously seen. Bergquist testified he was no longer as active as in the past, and this had caused reduced earning capacity. He *658 also claimed that he lost significant potential winnings from the mud racing circuit. The jury found Mackay to be eighty percent at fault and Kirchner twenty percent. The jury awarded Bergquist $97,195.

Mackay subsequently filed a motion for judgment notwithstanding the verdict. The district court denied the motion but did find the award for past medical expenses was excessive. The court reduced the total award by $200, which reduced Bergquist’s damages to $96,995. Mackay has appealed.

I. Mackay contends there was insufficient evidence to warrant the submission of the count on breach of implied warranty of fitness for a particular purpose. It alleges there was no evidence presented to show that it knew Bergquist intended to use the engine for a particular purpose, namely mud racing. Mackay claims the district court should have granted its motion for judgment notwithstanding the verdict.

Bergquist claims Mackay failed to preserve error on this issue because it did not object to the jury instruction on implied warranty of fitness for a particular purpose. Generally, we may only consider on appeal those objections to instructions previously raised with the trial court. Grefe & Sidney v. Watters, 525 N.W.2d 821, 824 (Iowa 1994). However, the question of whether an issue should have been submitted to the jury is preserved by a motion for directed verdict. Sandry v. John Deere Co., 452 N.W.2d 616, 619 (Iowa App.1989). Where the district court overrules a motion for directed verdict, a party does not waive error by agreeing to jury instructions which correctly state the law. Holdsworth v. Nissly, 520 N.W.2d 332, 335 (Iowa App.1994). By agreeing to the jury instructions, defendants are not agreeing there was a case for the jury. Id.

In the present case, defendant raised this issue by motion for directed verdict and by motion for judgment notwithstanding the verdict. We find the issue was sufficiently preserved for our review.

An implied warranty of fitness for a particular purpose is found in Iowa Code section 554.2315, and is part of the Uniform Commercial Code in Iowa. Section 554.2315 provides:

Where the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller’s skill or judgment to select or furnish suitable goods, there is unless excluded or modified under the next section an implied warranty that the goods shall be fit for such purpose.

Thus, recovery under section 554.2315 depends upon a showing that (1) the seller had reason to know of the buyer’s particular purpose; (2) the seller had reason to know the buyer was relying on the seller’s skill or judgment to furnish suitable goods; and (3) the buyer in fact relied on the seller’s skill or judgment to furnish suitable goods. Renze Hybrids, Inc. v. Shell Oil Co., 418 N.W.2d 634, 637 (Iowa 1988).

A warranty of fitness for a particular purpose is based on a special reliance by the buyer on the seller to provide goods that will perform a specific use envisaged and communicated by the buyer. Van Wyk v. Norden Laboratories, Inc., 345 N.W.2d 81, 83 (Iowa 1984).

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538 N.W.2d 655, 28 U.C.C. Rep. Serv. 2d (West) 1168, 1995 Iowa App. LEXIS 88, 1995 WL 601399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bergquist-v-mackay-engines-inc-iowactapp-1995.