Craft Tool & Die Co., Inc. v. Payne

385 N.W.2d 24, 1 U.C.C. Rep. Serv. 2d (West) 66, 1986 Minn. App. LEXIS 4174
CourtCourt of Appeals of Minnesota
DecidedApril 1, 1986
DocketC0-85-1717
StatusPublished
Cited by6 cases

This text of 385 N.W.2d 24 (Craft Tool & Die Co., Inc. v. Payne) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Craft Tool & Die Co., Inc. v. Payne, 385 N.W.2d 24, 1 U.C.C. Rep. Serv. 2d (West) 66, 1986 Minn. App. LEXIS 4174 (Mich. Ct. App. 1986).

Opinion

OPINION

LESLIE, Judge.

Sierra Paint Corporation appeals a judgment determining that its roof-coating product was defective and was the direct and proximate cause of damage to the roof of a building owned by Craft Tool & Die Company, Inc. The trial court ordered Wayne Payne and Jerry Sewell to pay Craft Tool & Die $1,758.46 plus $183.30 for costs and disbursements and ordered Sierra Paint to pay Craft Tool & Die $8,723.50 plus $735.10 for costs and disbursements. We affirm.

FACTS

This action involves the failure of a re-roofing job on a building owned by respondent Craft Tool & Die Company, Inc. The re-roofing was performed by respondents Wayne Payne and Jerry Sewell, who were then doing business as partners under the name of HRDC, Home Remodeling Discount Center. They used a product manufactured by appellant Sierra Paint Corporation in connection with the work on this job.

In the spring of 1981, employees of Craft discovered a leak between its original building and an addition built in 1975. The addition had a flat, tar and gravel roof that was approximately 3,000 square feet in size. Craft employees decided to re-roof the entire addition and hired respondents Payne and Sewell to do the work. Craft entered into a contract with HRDC dated September 4, 1981. The total price for the work on the addition was $5,250. Some additional work was to be done on the original building as well. The agreement covered labor and material for applying appellant’s Acryla-Roof product, a liquid roofing product, and for some flashing work. The agreement included a ten-year warranty on the roof.

Pursuant to the agreement, HRDC re-roofed Craft’s building from September 4, 1981 to approximately October 5, 1981. Craft paid HRDC in full.

The roof on the addition began leaking with the first rain, within one month after the job was completed. George Silus, president of Craft, contacted HRDC shortly Thereafter. HRDC sent two people to inspect the roof, and they pumped water off the roof at that time. Two weeks later, HRDC again sent two people to install a vent in the roof. No further repair attempts were made during the winter of 1981-82.

In the spring of 1982, the roof was inspected once again. In October, Craft contacted Walker Roofing Company and entered into a contract dated November 1, 1982 to have Walker replace the roof on the addition. Walker replaced the Acryla-Roof product with tar and gravel, and Craft paid Walker $9,560 for this work.

Craft brought an action against respondents Payne and Sewell and against appellant. Craft alleged that the re-roofing job was defective on grounds that the work and goods were defective, the warranties were breached, and there were misrepresentations. Craft sought damages for installing an entirely new roof and insulation approximately one year after leakage first occurred following the re-roofing job.

Appellant denied that its product was inherently defective, and cross-claimed against Payne and Sewell on grounds that they were negligent and misapplied the *26 product contrary to express written specifications of the manufacturer. Appellant also alleged that it had not been given proper notice of the claimed defect, that approximately one-half of Craft’s damages were caused by failure to take corrective action for more than one year after leakage was discovered, and that appellant had limited its liability. Prior to trial, appellant requested the court to make a determination of comparative fault. Payne and Se-well also cross-claimed against appellant.

ISSUES

1. Did the trial court err in finding that appellant breached express and implied warranties, was notified of such breach, and failed to limit its liability?

2. Did the trial court err in finding that the cause of the roof’s failure was appellant’s defective product?

3. Did the trial court abuse its discretion in its distribution of costs and disbursements?

ANALYSIS

1. In an action claiming breach of warranties, the claimant must prove the existence of a warranty, a breach, and a causal link between the product’s defect and the alleged harm. Peterson v. Bendix Home Systems, Inc., 318 N.W.2d 50, 52-53 (Minn.1982). The trial court found that Craft established these elements, and we will not reverse these findings of fact unless they are clearly erroneous. See Minn. R.Civ.P. 52.01.

Appellant apparently admits the existence of warranties but contests the trial court’s finding of a breach. The trial court made the following finding:

That the Acryla-Roof product sold to HRDC Construction and used on Plaintiff's roof was defective and did not meet the specifications for durability represented by the Defendant, Sierra Paint Corporation.

Appellant claims that there was no expert testing and no evidence that the product was defective when it left appellant’s plant.

We find sufficient evidence to support a finding of a breach of warranty. Michael Kohler, president of Walker Roofing, who has been a roofing contractor for twenty years, testified that the Acryla-Roof product does not work on a flat roof. Stuart Collins, appellant’s president, admitted that there was no liquid product on the market at that time that would handle flat roofs with water ponding. Yet appellant’s own specifications state that the Acryla-Roof product’s resistance to water ponding for two hundred hours is “excellent.” Donald Larson, appellant’s technical director, admitted that the product would work better on a flat surface that was not tar and gravel because after the first coat dries, the roofers could puncture the first layer while applying the second layer. Finally, Mark Uglem, appellant’s former vice president, investigated the Craft roof with Payne in the spring of 1982 and admitted that there was something wrong with the product and that new employees may have put the wrong resin into several batches of the Acryla-Roof product.

Appellant’s next argument is that even if it did breach a warranty, Craft is barred from recovery because appellant was not notified of the breach for more than one year after discovery of the roof's failure. See Minn.Stat. § 336.2-607(3) (1984). The trial court rejected this argument, finding that Payne and Sewell received notice of the defect within one month of completing the job in October 1981 and that appellant received notice of the defect and notice of breach of warranties prior to November 1, 1982.

Again, we find sufficient evidence to support the trial court’s finding. Payne testified that he and his spouse both called Collins, appellant’s president, and left messages concerning the roof's failure. Payne testified that he, Collins, and Larson discussed the Craft roof in the fall of 1982 while inspecting the roof of an apartment building with similar problems. The Craft roof was not replaced until after November 1, 1982, allowing appellant adequate opportunity to inspect or take other action.

*27 Appellant also argues that even if it did receive proper notice, appellant limited its. liability to replacement of the product.

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Bluebook (online)
385 N.W.2d 24, 1 U.C.C. Rep. Serv. 2d (West) 66, 1986 Minn. App. LEXIS 4174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/craft-tool-die-co-inc-v-payne-minnctapp-1986.