Litton Microwave Cooking Products, A Division of Litton Systems, Inc. v. Leviton Manufacturing Co.

15 F.3d 790
CourtCourt of Appeals for the Eighth Circuit
DecidedFebruary 7, 1994
DocketNos. 93-1121, 93-1126
StatusPublished
Cited by4 cases

This text of 15 F.3d 790 (Litton Microwave Cooking Products, A Division of Litton Systems, Inc. v. Leviton Manufacturing Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Litton Microwave Cooking Products, A Division of Litton Systems, Inc. v. Leviton Manufacturing Co., 15 F.3d 790 (8th Cir. 1994).

Opinion

MORRIS SHEPPARD ARNOLD, Circuit Judge.

Litton Microwave Cooking Products (“Litton”) brought this action for breach of warranty against Levitón Manufacturing Company, Inc. (“Levitón”) for damages resulting from defective component parts manufactured and sold by Levitón to Litton for use in microwave ovens. Levitón now appeals a district court1 judgment for damages and attorney’s fees in favor of Litton. At issue is whether a price quotation letter including detailed terms of sale forms the basis of a contract for the sale of goods listed. We hold that it does not and therefore affirm.

I.

In the 1970s and 1980s, Litton manufactured microwave ovens for sale under its own label, and for other microwave vendors such as Whirlpool, who would sell the ovens under their own brand names. Levitón is a manufacturer of small electrical components such as electrical sockets, light fixtures, and switches. Beginning in the mid-1970s, Levi-tón supplied electrical components to Litton for a variety of products. By 1984, these included switches for microwave oven fans. In May, 1987, Litton began to receive reports of fires and smoking in some of its microwave ovens. Burned ovens examined by Litton exhibited burn patterns starting at Levi-ton’s fan switch. Litton immediately notified Levitón, where it was discovered that a change in Leviton’s manufacturing process caused the switches to arc and smoke. The defective switches were manufactured from January, 1986, to July, 1987, when the process causing the defects was isolated and corrected. These switches, however, had been installed in microwave ovens sold under Litton and Whirlpool brand names.

Litton instituted a program to replace the defective fan switches. Through their dealer and service center networks, Litton and Whirlpool sent service personnel to consumers’ homes across the country to make repairs to over 75,000 ovens. The Consumer Products Safety Commission, after Litton notified it of the problem, endorsed the replacement program.

The switches that Levitón supplied were manufactured specially for Litton from stock switches altered to comport with drawings and specifications supplied by Litton engi[793]*793neers. Once the original design was fixed on, Levitón sent a price letter to Litton quoting the price for the switch. After receiving the price letter, Litton selected Levi-tón as the vendor of the switch. As prices changed from time to time, Levitón sent Litton price letters to advise it of the changes. Every price letter that Levitón sent to Litton had attached to it a copy of Levitoris “Standard Terms and Conditions of Sale.”

Among its various terms, Levitoris form included an express warranty that provided that:

Levitón warrants that products sold will, upon shipment, be free of defects of workmanship or material under normal and proper usage. Should any failure to conform to this warranty become apparent during the warranty period (in most eases one year after date of shipment), Levitón shall, upon proper written notice from the Purchaser, correct such non-conformity by repair or replacement of the defective part or parts. Corrections in the manner provided above shall constitute a fulfillment of all liabilities of Levitón with respect to the quality of the products. In no event and under no circumstances shall Levitón be liable to the Purchaser or to any other person for any indirect, special, consequential or incidental losses or damages, including, without limitation, lost profits, except to the extent that liability for personal injury, or property damage may be imposed upon Levitón by law.

Levitoris Terms and Conditions further provided:

No modification of these Terms or Conditions will be recognized by Levitón unless specifically agreed to in writing. Failure of Levitón to object to provisions contained in any purchase order or other communication from a purchaser ... shall not be construed as a waiver of these Standard Conditions of Sale nor an acceptance of any such provisions. Seller warrants that the goods described herein shall be free from defects in workmanship and materials_ These warranties shall be in addition to any other warranties expressed or implied.... All warranties shall run to Litton and subsequent purchasers of the goods or end products of which they are a part. Seller agrees, at its expense, to defend or assist in the defense of any action in any court against Litton or such purchaser, at Lit-toris opinion [sic], insofar as such action is based upon alleged facts which amount or may amount to a breach of the foregoing warranties. Seller agrees to indemnify Litton and such purchasers from all liability, loss, costs, and expense, including reasonable attorney’s fees, resulting from any breach of any or all said warranties, expressed or implied.

Litton referred to the price letters to prepare purchase orders on its own standard forms. The warranty provision of the purchase order states, in pertinent part:

Littoris purchase order also contained an “acceptance” clause, which provides:

This Purchase Order becomes a binding contract upon the terms and conditions set forth herein when it is accepted either by an acknowledgement or any performance. No revision to this Purchase Order shall be valid or binding unless any such revision is in writing and is signed by an authorized representative of Litton and no condition stated by Seller in accepting, acknowledging, or amending this Purchase Order shall be binding upon Litton if in conflict with, inconsistent with, or in addition to terms and conditions contained herein unless expressly accepted in writing by an authorized representative of Litton.

At trial both parties claimed that their respective forms represented the terms of the contract. Levitón also asserted that industry custom and practice, course of dealing, and usage of trade dictated recognition of its version of the warranty. Litton attempted to anticipate this defense by calling an adverse witness in its case in chief, and then calling a rebuttal witness to refute the testimony of its own witness. The trial court submitted the issue of which form controlled to the jury, which returned a verdict for Litton. Based on this verdict, and the stipulation of the parties as to certain elements of Littoris claimed losses, the district court en[794]*794tered judgment in favor of Litton for $4,009,-574, including $710,254 in attorney’s fees for this litigation. The court denied additional claims by Litton for attorney’s fees and replacement expenses in the amount of $543,-000.

Levitón assigns error to three determinations by the district court. First, Levitón asserts that the issue of which form governed the terms of the contract was properly one of law and not of fact. Second, Levitón believes that the district court improperly denied its motion for a new trial given Litton’s rebuttal of its own witness and the court’s submission of materially eonclusory jury instructions. Finally, Levitón maintains that even if Litton’s form is found to control the transaction, it does not call for an award of attorney’s fees in this case, as the district court found. Litton excepts to the denial of additional fees and expenses. We address each of these claims in turn.

II.

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

Related

PlayUp, Inc. v. Mintas
D. Nevada, 2023
(PC) Williams v. Unknown
E.D. California, 2022
Moore v. Williams
902 F. Supp. 957 (N.D. Iowa, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
15 F.3d 790, Counsel Stack Legal Research, https://law.counselstack.com/opinion/litton-microwave-cooking-products-a-division-of-litton-systems-inc-v-ca8-1994.