J.W. Smith v. TimberPro, Inc.

CourtCourt of Appeals of Tennessee
DecidedJanuary 17, 2019
DocketW2018-00878-COA-R3-CV
StatusPublished

This text of J.W. Smith v. TimberPro, Inc. (J.W. Smith v. TimberPro, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J.W. Smith v. TimberPro, Inc., (Tenn. Ct. App. 2019).

Opinion

01/17/2019

IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON November 13, 2018 Session

J.W. SMITH, ET AL. v. TIMBERPRO INC., ET AL.

Appeal from the Circuit Court for Carroll County No. 13-CV-76 Donald E. Parish, Judge ___________________________________

No. W2018-00878-COA-R3-CV ___________________________________

This is the second appeal of this case, which involves the destruction of a TimberPro TL735B harvester by electrical fire. In the first appeal, we affirmed the grant of summary judgment for all claims against the defendants except for claims of the breach of the implied warranties of merchantability and fitness against appellee, Woodland Equipment, Inc. (“Woodland”). After the first appeal, the trial court found that Woodland breached the implied warranty of merchantability with respect to the protective plastic covering used to cover the wires that caused the electrical fire. Nonetheless, the trial court did not hold Woodland liable, finding appellant, J.W. Smith, leaving the master switch “on” was the “last precipitating cause” of the fire. The court also determined that if an appellate court was to reverse its findings, the damages Smith would be entitled to would be $330,000 for the harvester, which was determined by subtracting the salvage value of the harvester ($45,000) from the value of the harvester before the fire ($375,000). We conclude that Smith’s failure to turn “off” the master switch was not an intervening cause, and the evidence does not preponderate against the trial court’s prospective award of damages. We affirm in part, reverse in part, and remand for further proceedings.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Affirmed in Part, Reversed in Part, and Remanded

BRANDON O. GIBSON, J., delivered the opinion of the court, in which RICHARD H. DINKINS, J., and J. STEVEN STAFFORD, P.J., W.S., joined.

W. Timothy Harvey and Rebecca J. Garman, Clarksville, Tennessee, for the appellant, J. W. Smith.

Kenneth R. Shuttleworth, Robert W. Briley, and Michelle Handelsman, Nashville, Tennessee, for the appellee, Woodland Equipment, Inc.

OPINION

I. FACTS & PROCEDURAL HISTORY

The underlying facts and procedural history of this dispute were set forth in this Court’s opinion from the first appeal (with original footnotes):

[J.W. Smith d/b/a J.W. Smith Logging (“Smith”)] owns and operates a logging business based in Tennessee Ridge, Tennessee. In 2010, Smith decided to purchase a commercial harvester designed and manufactured by TimberPro, Inc. (“TimberPro”). Smith contacted [Don Bush d/b/a Bush Forestry Equipment (“Bush”)], a Tennessee TimberPro dealer, about purchasing a TimberPro harvester equipped with a Risley harvesting head. Bush referred Smith to [Woodland Equipment, Inc. (“Woodland”)], a Michigan TimberPro dealer, because he believed that Woodland would be better-suited to installing the harvesting head.

In April 2010, Smith and Woodland entered into a written contract, titled “Sales Order,” for the sale of a TimberPro TL735B harvester equipped with a Risley Rolly II harvesting head. The Sales Order reflects Smith’s agreement to pay Woodland $481,000 for the harvester, states that it constitutes the entire contract between Woodland and Smith, and includes the following reference to a TimberPro warranty policy: I00 3041Y1:11011 AO AVM tnow JO ay. owe, SEt. "VVOI! WIM 7 ,67vit 04129g CPAMCDP/ VW 9 0 llit Y 'AAP:4104mM • A at1AM NI 1.14111d0D1 fINV10

The harvester was delivered to Smith in June 2010. Bush met with Smith when the harvester was delivered, ostensibly to help familiarize him with the harvester. During the meeting, Smith signed a document, titled “Delivery Report,” which stated in part, “Having read the TimberPro Warranty Policy . . . I now have a working knowledge of [the harvester].”

The TimberPro warranty policy referenced in the Sales Order and Delivery Report states:

1. Product Warranty. Subject to the terms and conditions of this limited warranty, Timberpro, Inc. (“Timberpro”) warrants to the original Purchaser only of 725 & 735 Series Machines that under normal use and

2 conditions the machines will be free from defect in material and workmanship when used for their intended purpose for a period of one (1) year-from delivery to the Purchaser or 2000 machine hours, whichever occurs first.

...

THIS LIMITED WARRANTY AND THE REMEDIES DESCRIBED HEREIN ARE PURCHASER‘S SOLE AND EXCLUSIVE REMEDY, AND ARE OFFERED BY TIMBERPRO IN LIEU OF ALL OTHER WARRANTIES, GUARANTEES, AND/OR REMEDIES WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE UNDER THE UNIFORM COMMERCIAL CODE, OR OTHER WARRANTIES OR GUARANTEES ARISING BY OPERATION OF LAW, ALL OF WHICH ARE HEREBY EXPRESSLY DISCLAIMED.

In May 2013, the harvester was destroyed by a fire. In December 2013, Smith filed a complaint against Bush in the Carroll County Circuit Court in which he alleged that the fire was caused by a defect in the harvester’s electrical system. 1 Later, Smith amended the complaint to include Woodland as a defendant. As amended, Smith’s complaint alleged that Bush and Woodland were liable for, among other things, breach of contract, breach of express warranties, and breach of the implied warranties of merchantability and fitness.2

In December 2015, Woodland and Bush filed motions for summary judgment on Smith’s contract and warranty claims. In their motions and supporting documents, Woodland and Bush asserted that Smith was bound by the terms of the TimberPro warranty policy, which provided a one-year limited warranty on the harvester and disclaimed all other warranties, including the implied warranties of merchantability and fitness. They

1 Although Smith’s complaint also named TimberPro as a defendant, the trial court granted summary judgment to TimberPro on all of Smith’s claims, and Smith does not challenge the trial court’s ruling with regard to TimberPro on appeal. 2 Smith’s complaint also asserted tort, products liability, and consumer protection claims against Bush and Woodland. In September 2015, the trial court granted summary judgment in favor of Bush and Woodland on those claims. Smith does not challenge the trial court’s ruling with regard to those claims on appeal.

3 argued that the trial court should dismiss Smith’s warranty claims because the only warranty on the harvester (the one-year limited warranty in the TimberPro warranty policy) expired before the fire that destroyed the harvester. Additionally, they argued that the trial court should dismiss Smith’s contract claim because Smith failed to allege or demonstrate any other basis for a breach of contract. Alternatively, Bush also argued that Smith’s warranty and contract claims against him should be dismissed because he was not in contractual privity with Smith.

In response, Smith argued that he was not bound by the TimberPro warranty policy because he did not receive a copy of it when he purchased the harvester. Additionally, Smith asserted that Woodland and/or Bush expressly warranted to him prior to the sale that the harvester would be “free from defects” and that “they would stand by their machines.” He argued that the harvester’s defective electrical system constituted a breach of that express warranty, a breach of the implied warranties of merchantability and fitness, and a breach of contract. Finally, Smith argued that there was a factual dispute as to whether Bush was a joint-seller of the harvester and therefore in contractual privity with Smith.

In March 2016, the trial court entered an order granting summary judgment in favor of Woodland and Bush. In relevant part, the trial court’s order states:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cigna Insurance v. OY Saunatec, Ltd.
241 F.3d 1 (First Circuit, 2001)
Janice K. Blim v. Newbury Industries, Inc.
443 F.2d 1126 (Tenth Circuit, 1971)
Potter v. Ford Motor Co.
213 S.W.3d 264 (Court of Appeals of Tennessee, 2006)
Chisholm v. JR SIMPLOT COMPANY
495 P.2d 1113 (Idaho Supreme Court, 1972)
Dunnivant v. Nafe
334 S.W.2d 717 (Tennessee Supreme Court, 1960)
McClenahan v. Cooley
806 S.W.2d 767 (Tennessee Supreme Court, 1991)
Evridge v. American Honda Motor Co.
685 S.W.2d 632 (Tennessee Supreme Court, 1985)
Rains v. Bend of the River
124 S.W.3d 580 (Court of Appeals of Tennessee, 2003)
Wyatt v. Winnebago Industries, Inc.
566 S.W.2d 276 (Court of Appeals of Tennessee, 1977)
Memphis Light, Gas & Water Division v. Starkey
244 S.W.3d 344 (Court of Appeals of Tennessee, 2007)
Allen v. Chance Manufacturing Co.
494 N.E.2d 1324 (Massachusetts Supreme Judicial Court, 1986)
Curtis v. Murphy Elevator Company
407 F. Supp. 940 (E.D. Tennessee, 1976)
Whitaker v. Whitaker
957 S.W.2d 834 (Court of Appeals of Tennessee, 1997)
Kenneth E. King v. Anderson County, Tennessee
419 S.W.3d 232 (Tennessee Supreme Court, 2013)
Exxon Co. v. Sofec, Inc.
517 U.S. 830 (Supreme Court, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
J.W. Smith v. TimberPro, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/jw-smith-v-timberpro-inc-tennctapp-2019.