Prutch v. Ford Motor Co.

574 P.2d 102
CourtColorado Court of Appeals
DecidedJanuary 30, 1978
Docket76-520
StatusPublished
Cited by9 cases

This text of 574 P.2d 102 (Prutch v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prutch v. Ford Motor Co., 574 P.2d 102 (Colo. Ct. App. 1978).

Opinion

574 P.2d 102 (1977)

Carl PRUTCH and Sam Prutch, co-partners d/b/a Diamond Trading Co., Plaintiffs-Appellees,
v.
FORD MOTOR COMPANY, a corporation, Defendant-Appellant, and
W. E. Baldridge and Don Baldridge, Individually and as partners d/b/a Baldridge Implement Co. and Baldridge Implement Co., Defendants.

No. 76-520.

Colorado Court of Appeals, Div. III.

October 6, 1977.
As Modified On Denial of Rehearing November 10, 1977.
Certiorari Granted January 30, 1978.

*102 Charles J. Haase, Colorado Springs, for plaintiffs-appellees.

Shafroth & Toll, P. C., Herbert A. Delap, Denver, for defendant-appellant.

PIERCE, Judge.

Plaintiffs, Carl and Sam Prutch, brought this action against defendants Ford Motor Company and Baldridge Implement Company for breach of express and implied warranties *104 in connection with the sale of certain farm equipment. Defendant Ford Motor Company appeals a judgment based on a jury verdict against it, and we reverse.

In early 1969, Carl and Sam Prutch expanded their vegetable farming operation by acquiring an additional 500 acres of nearby farm land, known as the "river ranch." Because they felt the additional acreage would require more heavy-duty farm equipment, the Prutches contacted a salesman for the defendant Baldridge Implement Company. On February 14, 1969, the Prutches purchased a tractor, plow, and disc harrow from Baldridge, all manufactured by Ford. In June of 1969, they bought a Ford baler from Baldridge.

Alleging that defects in these four pieces of equipment resulted in poor ground preparation of the river ranch, the Prutches sued Ford and Baldridge in October of 1971, claiming damages which included a loss of part of the 1969 river ranch crop. After the first trial ended in a mistrial, the jury in a second trial rendered a verdict in favor of the Prutches and against Ford for $60,200. It also rendered a verdict in favor of Baldridge.

I.

The principal issue which Ford raises on appeal relates to the question of damages. Ford insists that its liability, if any, extends only to the difference between the value of the equipment as warranted and the value of the equipment as delivered, and does not include consequential damages for crop loss. Ford further argues that even if the damages to the river ranch crop are theoretically recoverable, the evidence presented at trial was too remote and speculative to justify such an award.

Taking the remoteness question first, we disagree with Ford's contention that the evidence as to crop loss was too speculative. It is true that in order to justify an award of damages for lost crops, the trier of fact needs specific evidence showing the connection between the seller's breach and the crop damage. Fort Lyon Canal Co. v. Bennett, 61 Colo. 111, 156 P. 604 (1916). See Lee v. Durango Music, 144 Colo. 270, 355 P.2d 1083 (1960). However, despite Ford's argument to the contrary, the record here is replete with evidence, particularly from Sam Prutch and the Prutches' expert witness Dr. Smith, connecting the breach with the damage to the river ranch crop. This testimony was detailed and extensive, and was neither remote nor speculative.

II.

We also reject Ford's contention that the Prutches cannot, as a matter of law, recover for the crop damage. The basic measure of damages for breach of warranty under the Uniform Commercial Code is the difference between the value of the goods accepted and the value of the goods as warranted. Section 4-2-714(2), C.R.S.1973. It is this measure which Ford argues is controlling. But under "special circumstances," consequential damages may also be recovered. Section 4-2-714(2) and (3), C.R.S.1973.

The Code rejects the common law's narrow "tacit agreement" test, under which a seller was liable for consequential damages only if he expressly or impliedly agreed to be liable. See § 4-2-715, C.R.S.1973 (Official Comment 2). Instead, the element which triggers recovery of consequential damages under § 4-2-715(2)(a) is foreseeability. We construe § 4-2-715(2)(a) to mean that consequential damages are recoverable whenever those damages were reasonably foreseeable by the seller when he entered the contract. See Lewis v. Mobil Oil Corp., 438 F.2d 500 (8th Cir. 1971); Keystone Diesel Engine Co. v. Irwin, 411 Pa. 222, 191 A.2d 376 (1963); J. White & R. Summers, The Uniform Commercial Code § 10.4 at 325 (1972).

Ford argues that since the Prutches planted crops after they knew of the alleged defects in the equipment, any resulting crop damage was not foreseeable by Ford. We disagree.

The general rule is that the action of a buyer in using a product after he knows it *105 is defective is an intervening act which cuts off the seller's liability for consequential damages. See, e. g., Erdman v. Johnson Brothers Radio & TV Co., 260 Md. 190, 271 A.2d 744 (1970); General Instrument Corp. v. Pennsylvania Pressed Metals, Inc., 13 UCC Rptr.Serv. 829 (D.Md.1973); Michigan Sugar Co. v. Jebavy Sorenson Orchard Co., 66 Mich.App. 642, 239 N.W.2d 693 (1976). However, this general rule is inapplicable to the facts here.

When the Prutches learned of the alleged defects in their equipment, shortly after each piece was purchased in the spring of 1969, they could have stopped using the equipment and sued for damages under § 4-2-714(2). Ford urges this alternative rather than the continued use of the equipment. Had the Prutches ceased using the equipment, there is evidence in the record indicating that operations at the river ranch would have been delayed too long and that the 1969 crop would not have been planted in time. There is also evidence that the Prutches attempted to obtain substitute equipment, but were unable to do so. Thus, the Prutches were in a position of having to choose between reduced or damaged crops and no crop at all.

Under these circumstances, we hold that the planting did not cut off Ford's liability for damage to the crops, since the act of planting the crops was itself foreseeable. See Holm v. Hansen, 248 N.W.2d 503 (Iowa 1976); Burrus v. Itek Corp., 46 Ill.App.3d 350, 4 Ill.Dec. 793, 360 N.E.2d 1168 (1977). Accordingly, since the trial court gave proper instructions on the issue of foreseeability and proximate cause, we hold it did not err in refusing to limit damages to the impaired value of the equipment.

III.

Ford also argues that there was no evidence showing that the equipment was defective when last in its control. We agree as to the plow, but disagree as to the tractor, disc, and baler.

Before a buyer may recover for breach of an express or an implied warranty, he must show that the goods left the warrantor's control in a defective state. Herbstman v. Eastman Kodak Co., 68 N.J. 1, 342 A.2d 181 (1975); see J. White & R.

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Bluebook (online)
574 P.2d 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prutch-v-ford-motor-co-coloctapp-1978.