Byrd Motor Lines, Inc. v. Dunlop Tire & Rubber Corp.

304 S.E.2d 773, 63 N.C. App. 292, 136 U.C.C. Rep. Serv. (West) 1169, 1983 N.C. App. LEXIS 3050
CourtCourt of Appeals of North Carolina
DecidedJuly 19, 1983
Docket8222SC940
StatusPublished
Cited by17 cases

This text of 304 S.E.2d 773 (Byrd Motor Lines, Inc. v. Dunlop Tire & Rubber Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Byrd Motor Lines, Inc. v. Dunlop Tire & Rubber Corp., 304 S.E.2d 773, 63 N.C. App. 292, 136 U.C.C. Rep. Serv. (West) 1169, 1983 N.C. App. LEXIS 3050 (N.C. Ct. App. 1983).

Opinion

ARNOLD, Judge.

Because this case was decided on summary judgment under G.S. 1A-1, Rule 56, it is important to understand when that rule applies.

Summary judgment under G.S. 1A-1, Rule 56(c) is proper when there is “no genuine issue as to any material fact. . . .” It is a “drastic remedy . . . [that] must be used with due regard to its purposes and a cautious observance of its requirements in order that no person shall be deprived of a trial on a genuine disputed factual issue.” Kessing v. Mortgage Corp., 278 N.C. 523, 534, 180 S.E. 2d 823, 830 (1971). This remedy “does not authorize the court to decide an issue of fact. It authorizes the court to determine whether a genuine issue of fact exists.” Vassey v. Burch, 301 N.C. 68, 72, 269 S.E. 2d 137, 140 (1980) (emphasis in original). Summary judgment should be denied “[i]f different material conclusions can be drawn from the evidence.” Spector Credit Union v. Smith, 45 N.C. App. 432, 437, 263 S.E. 2d 319, 322 (1980).

In Koontz v. City of Winston-Salem, 280 N.C. 513, 186 S.E. 2d 897, reh’g denied, 281 N.C. 516, --- S.E. 2d --- (1972), the court defined two terms that are determinative on a summary judgment question.

*295 An issue is material if the facts alleged would constitute a legal defense, or would affect the result of the action, or if its resolution would prevent the party against whom it is resolved from prevailing in the action. The issue is denominated genuine if it may be maintained by substantial evidence.

280 N.C. at 518, 186 S.E. 2d at 901 (emphasis added). In addition to no issue of fact being present, to grant summary judgment a court must find “that on the undisputed aspects of the opposing evidential forecasts the party given judgment is entitled to it as a matter of law.” 2 McIntosh, N.C. Practice and Procedure § 1660.5 (2d ed., Phillips Supp. 1970). See also, W. Shuford, N.C. Civil Practice and Procedure § 56-7 (2d ed. 1981). In ruling on a summary judgment motion, the record should be viewed in the light most favorable to the party opposing the motion. Brice v. Moore, 30 N.C. App. 365, 367, 226 S.E. 2d 882, 883 (1976).

We now consider the plaintiff’s theories of liability separately-

I. Breach of Warranty

A. The Defendant’s Limited Warranty

1. North Carolina

All eight claims for relief in the complaint rely on breach of warranty as a ground for liability. Claims three, six, seven, and eight arose in North Carolina and are determined by our law.

The limited warranty given by the defendant here stated in part:

Every new Dunlop truck tire is warranted to be free from defects in materials and workmanship. If Dunlop’s examination shows such tire to be unfit under the terms of this warranty, an allowance will be made toward the purchase of a new Dunlop tire based upon (1) the thirty-seconds of an inch (/32") worn and (2) the Adjustment Unit Charge shown on the current Dunlop price sheet. . . .
NO IMPLIED WARRANTIES, EITHER OF MERCHANTABILITY OR OTHERWISE, ARE EXTENDED BEYOND THE TIME WHEN THE ORIGINAL TIRE TREAD IS WORN TO ONE OR MORE TREAD WEAR *296 INDICATOR (TWI) BARS [REPRESENTING TWO THIRTY-SECONDS OF A.N INCH (2/32") TREAD DEPTH REMAINING]. DUNLOP SHALL NOT BE RESPONSIBLE (1) FOR ANY COMMERCIAL LOSS, (2) FOR ANY DAMAGE TO, OR LOSS OF PROPERTY OTHER THAN THE TIRE ITSELF, OR (3) FOR ANY OTHER TYPE OF CONSEQUENTIAL DAMAGES OF A NON-PERSONAL INJURY NATURE. . . .
No dealer or representative has authority to make any commitment, promise or agreement binding upon Dunlop except as stated herein.

The limitations in this warranty were an attempt by the defendant to limit the plaintiff’s remedies as a buyer.

G.S. 25-2-316(4) states: “Remedies for breach of warranty can be limited in accordance with the provisions of this article on liquidation or limitation of damages and on contractual modification of remedy (§§ 25-2-718 and 25-2-719).”

G.S. 25-2-719(3) provides: “Consequential damages may be limited or excluded unless the limitation or exclusion is unconscionable. Limitation of consequential damages for injury to the person in the case of consumer goods is prima facie unconscionable but limitation of damages where the loss is commercial is not.”

The limitation of damages in the defendant’s warranty was effective for two reasons. First, the plaintiff has not shown that the limitation was unconscionable.

Although that term is not defined in North Carolina’s version of the Uniform Commercial Code (G.S. 25-2-302 only describes how an unconscionable contract or clause should be treated), it is rare that a limitation of remedy will be held unconscionable in a commercial setting since the relationship between business parties is usually not so one-sided as to force an unconscionable limitation on a party. J. White and R. Summers, Handbook of the Law Under the Uniform Commercial Code § 12-11 (1972). See also, Black’s Law Dictionary 1367 (5th ed. 1979) (cites “gross one-sidedness of a term . . . limiting damages” as a typical example of unconscionability): Billings v. Harris Co., 27 N.C. App. 689, 695, 220 S.E. 2d 361, 366 (1975), aff’d, 290 N.C. 502, 226 S.E. 2d 321 (1976). (“Unconscionability relates to contract terms that are op *297 pressive. It is applicable to one-sided provisions, denying the contracting party only opportunity for meaningful choice.”)

Second, this is not a case of personal injury. Thus, the plaintiff does not have the benefit of the presumption of uncon-scionability of a limitation of damages in case of personal injury that the second sentence of G.S. 25-2-719(3) provides because the loss was commercial. In such a situation, the plaintiff has the burden of showing unconscionability. See Billings, 27 N.C. App. at 695, 220 S.E. 2d at 366.

We also note that the limited warranty meets G.S. 25-2-719(l)(a)’s provision for limited remedies. The defendant’s warranty provides for an allowance on the purchase of new tires if tires that were previously purchased turn out to be unfit. This appears to be “a fair quantum of remedy” that the commentary to the statute mandates. See Official Comment 1 to G.S. 25-2-719.

2. Other States

Claims one and two, which arose in Tennessee and West Virginia, respectively, are barred by the three-year statute of limitations applicable here. G.S. 1-52(1); B-W Acceptance Corp. v. Spender, 268 N.C. 1, 149 S.E. 2d 570 (1966). We apply the North Carolina limitation period because remedies are governed by the laws of the jurisdiction where the suit is brought. “The lex fori determines the time within which a cause of action shall be enforced.” Sayer v. Henderson, 225 N.C.

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304 S.E.2d 773, 63 N.C. App. 292, 136 U.C.C. Rep. Serv. (West) 1169, 1983 N.C. App. LEXIS 3050, Counsel Stack Legal Research, https://law.counselstack.com/opinion/byrd-motor-lines-inc-v-dunlop-tire-rubber-corp-ncctapp-1983.