Holbrook v. LINK-BELT CONST. EQUIPMENT

12 P.3d 638, 42 U.C.C. Rep. Serv. 2d (West) 1022, 103 Wash. App. 279, 2000 Wash. App. LEXIS 2264
CourtCourt of Appeals of Washington
DecidedNovember 9, 2000
Docket24953-7-II
StatusPublished
Cited by4 cases

This text of 12 P.3d 638 (Holbrook v. LINK-BELT CONST. EQUIPMENT) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holbrook v. LINK-BELT CONST. EQUIPMENT, 12 P.3d 638, 42 U.C.C. Rep. Serv. 2d (West) 1022, 103 Wash. App. 279, 2000 Wash. App. LEXIS 2264 (Wash. Ct. App. 2000).

Opinion

12 P.3d 638 (2000)
103 Wash.App. 279

HOLBROOK, INC., a Washington corporation, Appellant,
v.
LINK-BELT CONSTRUCTION EQUIPMENT COMPANY, Isuzu Diesel of North American, Inc. and Howard Cooper Corporation, Respondents.

No. 24953-7-II.

Court of Appeals of Washington, Division 2.

November 9, 2000.

*639 Peter Thomas Petrich, Davies Pearson Pc, Tacoma, for Appellant.

Jerret E. Sale, Elizabeth Curie Kim, Bullivant Houser Bailey, P.c., John Alan Knox, Margaret A. Sundberg, Williams Kastner & Gibbs, Seattle, for Respondents.

HUNT, J.

Holbrook, Inc. (Holbrook) appeals the summary judgment dismissal of its product liability lawsuit to recover on warranties for a defective log loader from Link-Belt Construction Equipment Company and Isuzu Diesel of North America, Inc. Holbrook argues the trial court erred in ruling that statutes of limitations barred its claims. We affirm, holding that: (1) Holbrook's warranty claims do not fall within the "future performance" exception of the statute of limitations; (2) the warranty statute of limitations was not tolled by Link-Belt's and Isuzu's repair efforts; and (3) Holbrook's product liability claim was also time-barred because Holbrook knew of the defect more than three years before filing suit.

FACTS

Holbrook is a logging company. In August 1988, Holbrook entered into a "Flex Lease" agreement with Howard-Cooper Corporation, a Link-Belt distributor, for the purchase of a Link-Belt hydraulic log loader. The log loader was constructed from a converted excavator and powered by an Isuzu engine. Holbrook's president, Jerry Holbrook, negotiated the agreement with Howard-Cooper sales manager Cecil White. Under the "Flex Lease" agreement, Holbrook could rent the log loader for six months and then either purchase or return it. The, $266,574 purchase price included the cost of extended Link-Belt and Isuzu warranties.

Link-Bels issued its standard warranty when it delivered the log loader on September 9, 1988. The warranty provided:

[Link-Belt] warrants all products manufactured by it to be free from defects in *640 material and manufacture at the time of shipment for twelve (12) months from date of shipment or 1500 hours of operation, whichever shall occur first. [Link-Belt] will furnish without charge, f.o.b. its factory, replacements for such [of] the parts as [Link-Belt] finds to have been defective at the time of shipment, or at [Link-Belt's] option, will make or authorize repairs to such parts....

(Emphasis added.) Link-Belt's extended warranty for powertrain components covered "a time period of thirty[-]six (36) months after initial delivery of the machine or 5000 operating hours, whichever occur[red] first."

Isuzu's standard engine warranty covered parts and labor for 12 months or 1,800 hours of operation under the following conditions:

[Isuzu's] products and parts, when shipped, will meet all applicable specifications and will be free from defects in material and workmanship....
All claims for defective products or parts under this warranty must be made in writing immediately upon discovery and, in any event, but not to exceed twelve (12) months after delivery....
The repair of defective engine parts qualifying under this warranty will be performed by an authorized service outlet, using new parts, within a reasonable time following the delivery of the engine to the service outlet's place of business.

(Emphasis added.) The extended Isuzu warranty, labeled an "Extended Service Plan," required Isuzu to "pay 100% of parts and labor to repair or replace" defective engine components for three years or 5,000 hours of operation, whichever occurred first.

The log loader was plagued by mechanical problems from the beginning. A Howard-Cooper mechanic had to fix "a fuel problem... [or] some filter" just to off-load the log loader from the delivery truck. And in the three or four months following delivery:

The hydraulic pressures were real sporadic and ... would spike and blow hoses. The boom control was extremely radical. It would shake. The pressures would get so high that it would shake the cab and [you] couldn't control the operation of the machine.

In November 1988, frustrated by the log loader's performance, Jerry Holbrook contacted White to ask about returning the log loader to Link-Belt and canceling the flex lease. White convinced Holbrook to keep the log loader, "insisting that Link-Belt and Howard-Cooper could fix" it. But according to Jerry Holbrook, "for far more than two years, Howard-Cooper, Link-Belt, Isuzu, and their authorized repair companies ... made repeated attempts to replace and repair parts on both the log loader and the engine" with little success. From 1989 through 1992, Howard-Cooper and Link-Belt represented that they could fix the log loader.

In April or May 1990, a Holbrook employee was operating the log loader when the cab broke apart from the rest of the machine. Jerry Holbrook examined the log loader and its detached cab both "on the job and at Howard-Cooper"; he suspected that the "the weld around the riser portion wasn't properly adhered, wasn't welded properly."

Sometime before 1992, Jerry Holbrook consulted an attorney regarding repair problems Holbrook was experiencing with Howard-Cooper and Link-Belt. Link-Belt continued to approve warranty claims for repairs by Howard-Cooper and its successor as late as February 1993. In May 1993, a Howard-Cooper mechanic confirmed Holbrook's earlier suspicion that the cab had not been properly welded to the body of the log loader.

In December 1993, Holbrook sued Link-Belt and Isuzu, later adding Howard-Cooper as a defendant.[1] Holbrook claimed negligent manufacture, breach of express and implied warranties, and violation of the Washington Product Liability Act (WPLA), RCW ch. 7.72. Jerry Holbrook later testified in his deposition that he did not fault Isuzu for the cab's separation.[2]

*641 The trial court granted Link-Belt and Isuzu summary judgment and dismissed Holbrook's case, ruling that the statutes of limitations had run on Holbrook's breach of warranty and WPLA causes of action.[3]

ANALYSIS

I. BREACH OF WARRANTY CLAIMS—TIMELINESS

The statute of limitations for a breach of warranty claim is "four years after the cause of action has accrued." RCW 62A.2-725(1). "A cause of action accrues when the breach occurs, regardless of the aggrieved party's lack of knowledge of the breach." RCW 62A.2-725(2).

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.

RCW 62A.2-725(2). In other words, the four-year limitations period normally begins to run upon delivery of the goods. But if goods are sold with a warranty of future performance, the limitations period runs from the date on which the defect is or should have been discovered.[4]

A.

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Bluebook (online)
12 P.3d 638, 42 U.C.C. Rep. Serv. 2d (West) 1022, 103 Wash. App. 279, 2000 Wash. App. LEXIS 2264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holbrook-v-link-belt-const-equipment-washctapp-2000.