Lieb v. Milne

625 P.2d 1233, 95 N.M. 716
CourtNew Mexico Court of Appeals
DecidedAugust 26, 1980
Docket4403
StatusPublished
Cited by5 cases

This text of 625 P.2d 1233 (Lieb v. Milne) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lieb v. Milne, 625 P.2d 1233, 95 N.M. 716 (N.M. Ct. App. 1980).

Opinions

OPINION

ANDREWS, Judge.

This action arises out of the sale of a specially constructed truck to the plaintiffs, Henry and Jackie Lieb. On January 17, 1977, the Liebs entered into an agreement calling for the purchase of a 1977 Chevrolet van from defendant, Milne. Milne was to convert that van into a refrigerated carrier. Milne purchased the van from Sacramento Chevrolet and had it transported to Stewart Equipment Company in El Paso for installation of the refrigeration that was necessary under the' contract. Stewart, in turn, had the refrigeration equipment installed by Western Battery and Magneto, under contract.

The truck was delivered to the Liebs on February 22, 1977. The retail sales agreement covering this transaction included a limitation on the implied warranty — those warranties were limited to the one year express warranty given by Chevrolet. Though there is conflicting evidence as to exactly what the truck was warranted to do, read in the light most favorable to defendant it appears that the truck was to maintain temperatures down to 35 degrees Fahrenheit. During the four months after delivery the Liebs had repeated difficulties with the refrigeration portion of the truck. Other mechanical difficulties also resulted from the fact that both the refrigeration unit and the truck’s air conditioner were run off the same compressor. This dual use overtaxed the available equipment.

On June 22, the Liebs met with Milne and requested that the terms of the warranty be met; they noted repeated problems with the truck and unsatisfactory repair under the warranty. At that time, they also requested an extension of the 12,000 mile limitation on the warranty which was soon to run out. Milne refused, and the Liebs were unable to reach any satisfactory resolution of this problem. During the next several months the Liebs continued to use the truck. Late in January, 1978, the Liebs unsuccessfully attempted to rescind the contract of sale. This suit followed.

At trial the Liebs proceeded under four theories: misrepresentation, revocation of acceptance and cancellation of the contract, breach of the implied warranty of merchantability, and breach of the implied warranty of fitness for particular purpose. Although the trial court made only four findings of fact, it did note whether each of the one hundred seventeen requested findings submitted by the plaintiff were given or rejected. It concluded:

8. There was implied in the contract of January 1977, an implied warranty of merchantability and an implied warranty of fitness for particular purpose.
9. The Plaintiff had the burden of proving that under said warranty the vehicle must carry frozen products.
10. The Plaintiff failed to carry its burden of proof in Counts III and IV.
11. Plaintiffs Exhibit 1, the Retail Sales Agreement of January, 1977, properly modified or limited the implied warranties pursuant to Sec. 2-316 of the U.C.C.
12. The implied warranties expired prior to the filing of this lawsuit. (Emphasis added.)

Those conclusions were based on Findings 1 and 2 that plaintiffs failed to carry the burden of proof on Counts I and II. The court’s findings relating to Counts III and IV were:

3. There is contained in plaintiff’s Exhibit I, a Retail Sales Agreement, limiting the implied warranties to the term of the express warranty by Chevrolet Motor Company.
4. At the time this action was commenced, the express warranty had expired.

Additionally, although not indicated in the court’s Findings of Fact and Conclusions of Law that it adopted and incorporated certain requested findings of defendant, the court did mark “given” beside these pertinent findings requested by defendant:

7. Plaintiffs did not attempt to rescind the contract between the parties until January of 1978, which attempt was untimely and additionally, the plaintiffs’ use of the motor vehicle for some 64,000 miles was inconsistent with the equitable remedy of rescission.
8. The motor vehicle carried a warranty of 12,000 miles or 12 months, both of which had expired prior to bringing this lawsuit and the attempted rescission of the plaintiffs in January of 1978.
13. Plaintiffs’ acceptance of the motor vehicle and plaintiffs’ use thereafter have estopped plaintiffs from asserting any claim against defendant for nonconformity.
14.Plaintiffs have waived any claim against defendant because of any nonconforming use.

and also marked as “given” defendant’s requested conclusion that all four counts should be dismissed with prejudice “because of lack of substantial evidence, waiver and estoppel.”

Fitting the “given” findings and conclusions together with the court’s findings and conclusions, it appears to us that Counts III and IV were dismissed because the trial court believed that suit on the implied warranties had to be brought within the one-year warranty period stated in the Retail Sales Agreement.

The Liebs contend that three errors occurred. First, that the trial court erred in holding that a suit brought after the expiration of the one-year time limit or the 12,000 mile limit, barred any action on the implied warranties. Second, that the trial court in its four findings of fact, failed to find either way on facts material to the issues in the case, and thus committed reversible error. Third, that the findings of the trial court particularly with regard to revocation were not supported by substantial evidence. We hold that the first of these issues is dispositive. The trial court clearly erred in considering the one-year warranty limitation period as being a jurisdictional bar to an action under the implied warranties. We therefore reverse and remand this action.

The original complaint filed by the Liebs stated, “[tjhat at the time of said sale . . . Defendant . . . knowing that Plaintiffs owned and operated a specialty food store, warranted and represented to Plaintiffs that said goods would remain at a temperature compatible with bringing frozen items intact from California to Alamogordo, New Mexico. . . . ” The evidence most favorable to the defendants, however, is that this was not the case. Representations were made that the truck would maintain temperatures of 35 degrees Fahrenheit and could be used to transport non-frozen items. Thus reviewing either the theory of implied warranty of merchantability or the implied warranty of fitness for particular purpose, the correct consideration is whether the truck would have maintained that 35 degree temperature.1

The issues of implied warranty of merchantability and implied warranty for a particular purpose were both litigated in the District Court, as recognized in the trial court’s Conclusion No. 8. We find an error in the conclusion of the trial court as to the terms and effects of these warranties.

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Lieb v. Milne
625 P.2d 1233 (New Mexico Court of Appeals, 1980)

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Bluebook (online)
625 P.2d 1233, 95 N.M. 716, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lieb-v-milne-nmctapp-1980.