Fordyce Concrete, Inc. v. MacK Trucks, Inc.

535 F. Supp. 118, 1982 U.S. Dist. LEXIS 11428
CourtDistrict Court, D. Kansas
DecidedMarch 17, 1982
DocketCiv. A. 81-2041
StatusPublished
Cited by19 cases

This text of 535 F. Supp. 118 (Fordyce Concrete, Inc. v. MacK Trucks, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fordyce Concrete, Inc. v. MacK Trucks, Inc., 535 F. Supp. 118, 1982 U.S. Dist. LEXIS 11428 (D. Kan. 1982).

Opinion

*119 MEMORANDUM AND ORDER

EARL E. O’CONNOR, Chief Judge.

Defendant Mack Truck, Inc., and defendant Reynolds Metals Company have filed respective motions for summary judgment on the grounds (1) that plaintiff’s warranty claim is barred by the four-year statute of limitations pursuant to K.S.A. 84-2-725, and (2) that the damages suffered by plaintiff were solely economic loss and cannot support a strict liability claim. In its memorandum in opposition to defendants’ motions, plaintiff does not contradict the assertion that its warranty claim is barred by the controlling statute of limitations, but argues that its strict liability claim is proper because plaintiff seeks recovery for physical damage to property, not economic loss or the cost of repairing the defective product. In addition, plaintiff has filed a motion to amend the petition alleging negligence on the part of the defendants, which defendants oppose. Having considered the helpful briefs submitted by the parties and the oral arguments presented by counsel for plaintiff and for defendant Mack, we are now ready to rule upon these motions.

The following facts are undisputed. On March 21, 1975, defendant Mack Trucks, Inc., (hereinafter Mack) delivered chassis No. RL 685LS-26135 to Ash Grove Cement, which was the parent corporation of plaintiff Fordyce. Defendant Mack knew the chassis was to be used as a concrete truck, but plaintiff arranged for the purchase and installation of the truck mixer assembly. The frame of the chassis broke on May 21, 1979, causing the cab and mixer first to separate and then to collide with each other. Fordyce filed suit against Mack on January 21,1981, alleging breach of implied warranties and strict liability for sale of a product in a dangerous and defective condition. On April 2, 1981, Fordyce filed suit alleging Reynolds Metal Company had designed, manufactured and built the frame of the Mack truck and was strictly liable for damage caused by its dangerous and defective condition.

Defendants argue that the statute of limitations bars plaintiff’s warranty claim. The express warranty covering the frame side rails was the Mack Standard Vehicle Warranty for 200,000 miles or 36 months, whichever came first. The warranty contained the following provision: “This warranty is made expressly in lieu of any other warranties, expressed or implied, including any implied warranty of merchantability or fitness for a particular purpose, and of any other obligation or liability on the part of the manufacturer including, without limitation of the foregoing, consequential and incidental damages.”

Pursuant to § 1-102 of the Kansas Uniform Commercial Code (hereinafter UCC), K.S.A. 84-1-102, this sale involves a transaction in goods as defined in § 2-105(1) of the UCC, K.S.A. 84-2-105(1), and is therefore covered by Article 2 of the UCC. The controlling statute of limitations on the warranty claim, set forth at § 2-725, K.S.A. 84-2-725, provides in pertinent part:

(1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it.
(2) A cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach. A breach of warranty occurs when tender of delivery is made, except that where a warranty explicitly extends to future performance of the goods and discovery of the breach must await the time of such performance the cause of action accrues when the breach is or should have been discovered.

The warranty cause of action accrued on March 21, 1975, when the Mack chassis No. RL 685LS-26135 was delivered. Since the action before us was commenced on January 21, 1981, more than four years after delivery of the chassis, plaintiff’s warranty action is barred by the four-year statute of limitations, K.S.A. 84-2-725. Therefore, the defendants’ motions to dismiss plaintiff’s warranty claim must be granted.

*120 As grounds for summary judgment on plaintiffs strict liability claim, defendants contend that the total recovery sought by plaintiff is for damage to the Mack truck, the manufactured product. Defendants argue this is a purely economic loss that is not recoverable in a strict liability claim. In response plaintiff argues that the damages it seeks covers injury to the cab and to the cement mixer mounted on the frame, but not for the cost to repair the frame or for “economic losses” such as loss of use of the truck, loss of profits resulting from damage to the truck, or the cost of renting a temporary replacement. In determining which damages, if any, sought by plaintiff are recoverable under the theory of strict liability in tort, we recognize the following four types of possible injuries in products liability cases involving claims of strict liability: (1) personal injuries, (2) physical damage to property other than the defective product, (3) harm to the defective product itself, and (4) economic loss. Iowa Electric Light & Power Co. v. Allis-Chalmers Mfg. Co., 360 F.Supp. 25, 28 (S.D.Iowa 1973). No personal injury occurred in this case. As explained in the following discussion, we conclude that the damages sought by plaintiff should be categorized as damage to the defective product itself and as physical damage to other property, but not as a claim for economic losses. We also conclude that both types of damages sought by plaintiff are recoverable under the theory of strict liability in tort.

All parties direct our attention to plaintiff’s answer to defendant Mack’s Interrogatory No. 20 to establish the type of damages sought by plaintiff. This interrogatory asks plaintiff to “[ijtemize and describe all damages which you allege were incurred by plaintiff as a result of the incident alleged in plaintiff’s petition.” Plaintiff’s answer, which is attached to the interrogatory as Exhibit B, is an appraisal of damages to a Mack truck. The items listed in the appraisal refer to the truck cab and mixer and to the Mack chassis. Since this is an insurance subrogation claim, plaintiff does not include in its damages the cost to repair the defective frame, but seeks recovery only for injuries to “other property.” Plaintiff includes within its definition of “other property” damage to the cab of the truck and to the mounted mixer assembly.

In Brooks v. Dietz, 218 Kan. 698, 702, 545 P.2d 1104 (1976), the Kansas Supreme Court approved an action premised upon strict liability in tort and adopted the theory as set out in § 402A of the Restatement of Torts, Second. Section 402A, which imposes liability for physical harm to property, provides as follows:

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Bluebook (online)
535 F. Supp. 118, 1982 U.S. Dist. LEXIS 11428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fordyce-concrete-inc-v-mack-trucks-inc-ksd-1982.