Mexia v. Rinker Boat Co., Inc.

174 Cal. App. 4th 1297, 95 Cal. Rptr. 3d 285, 2009 Cal. App. LEXIS 942
CourtCalifornia Court of Appeal
DecidedJune 15, 2009
DocketE045443
StatusPublished
Cited by133 cases

This text of 174 Cal. App. 4th 1297 (Mexia v. Rinker Boat Co., Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mexia v. Rinker Boat Co., Inc., 174 Cal. App. 4th 1297, 95 Cal. Rptr. 3d 285, 2009 Cal. App. LEXIS 942 (Cal. Ct. App. 2009).

Opinion

Opinion

KING, J.

Plaintiff Jess Mexia sued Rinker Boat Company, Inc. (Rinker), and Miller’s Landing (Miller) for breach of the implied warranty of merchantability under the Song-Beverly Consumer Warranty Act (Civ. Code, § 1790 et seq.) (the Song-Beverly Act). In essence, Mexia alleged that he *1301 purchased from Miller a boat manufactured by Rinker that was unmerchantable due to a latent defect, which subsequently caused the boat’s engine to corrode. He commenced his action within four years after purchasing the boat.

In support of their demurrer to the complaint, Rinker and Miller asserted that Civil Code section 1791.1, subdivision (c)—a provision of the Song-Beverly Act that defines the duration of the implied warranty of merchantability—is a one-year statute of limitations that bars Mexia’s claim. 1 The court sustained the demurrer without leave to amend. After judgment was entered in favor of Rinker and Miller, Mexia appealed.

On appeal, Rinker and Miller concede that the duration provision is not a statute of limitations and that the applicable statute of limitations is four years. They argue, however, that the judgment can be affirmed on other grounds. Among other arguments, they contend that the duration provision of the Song-Beverly Act should be interpreted as barring an action for breach of the implied warranty of merchantability when the purchaser fails to discover and report the defect to the seller within the time period specified in that provision. We reject this argument because the plain language of the statute, particularly in light of the consumer protection policies supporting the Song-Beverly Act, make clear that the statute merely creates a limited, prospective duration for the implied warranty of merchantability; it does not create a deadline for discovering latent defects or for giving notice to the seller. Because we also reject Rinker and Miller’s other arguments, we reverse the judgment.

I. SUMMARY OF FACTUAL ALLEGATIONS AND PROCEDURAL HISTORY 2

Mexia bought a boat from Miller on April 12, 2003. The boat was manufactured by Rinker. Rinker gave an express “Limited Warranty” to Mexia, a copy of which is attached to the complaint. Rinker’s limited warranty provides that the boat “will be free from substantial defects in materials and workmanship for a period of one (1) year from the date of purchase . . . [and] the boat hull will be free of structural defects in material and workmanship for a period of five (5) years from date of purchase . . . .” The express warranty does not apply to certain equipment and accessories, *1302 including the boat engine. Rinker’s limited warranty expressly limits “the duration of any implied warranties of merchantability and all implied warranties of fitness for a particular purpose to the term of this limited warranty” and “disclaims any implied warranties of merchantability and implied warranties of fitness for a particular purpose after expiration of this limited warranty.” (Capitalization omitted.) Finally, the limited warranty states that “[n]o action to enforce this Limited Warranty shall be commenced later than six (6) months after expiration of this Limited Warranty.”

By July 2005, repairs to the boat were needed “because of defects, nonconformities, misadjustments or malfunctions relating to corrosion in the engine.” (Mexia did not allege the date he first observed the defects, etc.) On July 8, 2005, Mexia returned the boat to a boat dealer authorized to make repairs under the written warranties. Subsequently, the boat “exhibited further and additional defects, nonconformities, misadjustments or malfunctions in the same components or systems.” Each time, Mexia notified Rinker and Mercury Marine of the problems within a reasonable time after discovering the problem, demanding that the boat be repaired under the warranties. Defendants failed to make the boat “conform to the applicable warranties . . . .” On October 3, 2006, Mexia discovered that defendants “were unable or unwilling to make the [boat] conform to the applicable warranties.”

Mexia alleges that at the time he acquired the boat, each defendant “impliedly warranted that the [boat] was merchantable as provided in [the Song-Beverly Act].” The boat, however, “was not merchantable as evidenced by the defects, nonconformities, misadjustments, and malfunctions” alleged in the complaint.

The complaint was filed on November 27, 2006—three years seven months after Mexia purchased the boat.

Rinker and Miller demurred to the single cause of action asserted against them—breach of the implied warranty of merchantability under the Song-Beverly Act. As stated above, the court sustained the demurrer without leave to amend. 3 Judgment was thereafter entered in favor of Rinker and Miller.

II. ANALYSIS

A. Standard of Review

We independently review the ruling on a demurrer and determine de novo whether the complaint alleges facts sufficient to state a cause of action. *1303 (McCall v. PacifiCare of Cal., Inc. (2001) 25 Cal.4th 412, 415 [106 Cal.Rptr.2d 271, 21 P.3d 1189].) We assume the truth of the properly pleaded factual allegations, facts that reasonably can be inferred from those expressly pleaded, and matters of which judicial notice has been taken. (Schifando v. City of Los Angeles (2003) 31 Cal.4th 1074, 1081 [6 Cal.Rptr.3d 457, 79 P.3d 569].) We construe the pleading in a reasonable manner and read the allegations in context. (Ibid.) We affirm the judgment if it is correct on any ground stated in the demurrer, regardless of the trial court’s stated reasons. (Aubry v. Tri-City Hospital Dist. (1992) 2 Cal.4th 962, 967 [9 Cal.Rptr.2d 92, 831 P.2d 317].)

B. Background

Under the Song-Beverly Act, every retail sale of “consumer goods” in California includes an implied warranty by the manufacturer and the retail seller that the goods are “merchantable” unless the goods are expressly sold “as is” or “with all faults.” 4 (Civ. Code, §§ 1791.3, 1792.) Merchantability, for purposes of the Song-Beverly Act, means that the consumer goods: “(1) Pass without objection in the trade under the contract description. [f] (2) Are fit for the ordinary purposes for which such goods are used. [][] (3) Are adequately contained, packaged, and labeled. [And] [f] (4) Conform to the promises or affirmations of fact made on the container or label.” (Civ. Code, § 1791.1.) “ ‘The core test of merchantability is fitness for the ordinary purpose for which such goods are used. [Citation.]’ [Citations.]” (Isip v. Mercedes-Benz USA, LLC (2007) 155 Cal.App.4th 19, 26 [65 Cal.Rptr.3d 695].) Such fitness is shown if the product “is ‘in safe condition and substantially free of defects’ . . . .” (Id. at p. 27.)

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174 Cal. App. 4th 1297, 95 Cal. Rptr. 3d 285, 2009 Cal. App. LEXIS 942, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mexia-v-rinker-boat-co-inc-calctapp-2009.