Schlossberg v. Koehring Co.

333 F. Supp. 1345, 15 Fed. R. Serv. 2d 1193, 1971 U.S. Dist. LEXIS 10798
CourtDistrict Court, E.D. Wisconsin
DecidedNovember 15, 1971
DocketCiv. A. No. 67-C-179
StatusPublished

This text of 333 F. Supp. 1345 (Schlossberg v. Koehring Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schlossberg v. Koehring Co., 333 F. Supp. 1345, 15 Fed. R. Serv. 2d 1193, 1971 U.S. Dist. LEXIS 10798 (E.D. Wis. 1971).

Opinion

OPINION AND ORDER

REYNOLDS, District Judge:

This diversity action arises out of the alleged malfunction of a crane carrier which was manufactured by a division of the defendant corporation and sold by one of defendant’s distributors to plaintiffs on October 25,1965.

The complaint alleges that recovery may be had on one of four theories: breach of express warranty, breach of implied warranty, misrepresentation, 'find negligence in the manufacture of the carrier unit. The defendant has counterclaimed for a declaratory judgment that the malfunction of the carrier unit was not attributable to any of the reasons set forth in plaintiffs’ causes of action. I have concluded that the malfunction complained of was not due to any of the reasons set forth in the plaintiffs’ complaint.

Gerald Schlossberg and Marshall Schlossberg operate a business known as Acme Iron & Metal Company (hereafter “Acme”), a partnership, in Anderson, Indiana, engaged in the metal salvage and recovery business. In connection with their business, they require the use of cranes and carriers to transport the cranes to the various job sites at which they operate. When the cranes and carriers are not necessary for their own business purposes, they are from time to time rented to others for a fee.

The defendant Koehring Company is a Wisconsin corporation. Its SchieldBantam Division is located in Waverly, Iowa, and manufactures cranes and crane carriers.

During the year 1965, prior to October 25, 1965, Acme decided to purchase a mobile crane for use primarily at on-the-site railroad derailment work. Prior to purchasing the crane and carrier unit in question, the plaintiffs had investigated other products of a similar nature manufactured by other manufacturers [1346]*1346and obtained brochures published by the manufacturers, including those of defendant. The brochures published by Koehring Company contained the following statements referring to the SchieldBantam Model 306 carrier:

“Pick up work where others its size quit.”
“Move into and out of the toughest ground conditions easily with Bantam’s rugged 6x6 drive.”
“Carries- an unconditional six-month warranty against defective parts and workmanship.”
“The Model 306 carrier is designed and built by Bantam craftsmen specifically for mounting of the Bantarif* T350 basic unit. This assures perfect balance of carrier and base to give maximum lifting stability * * * high speed excavator service and fast job to job moves with a minimum of total gross weight.”
“Fast travel under all job conditions.” “Normal highway speed 40 miles per hour.”
“Plus the high speed mobility for pick-up work.”
“Bantam makes every job accessible, gets to it faster, finishes it quicker.” “Bantam-built rugged, dependable.” “Highest earning power.”
“Lowest operation and maintenance cost.”

George McLean, d/b/a General Equipment & Machine Co. of South Bend, Indiana (hereinafter “General”), was at the time of the transaction herein mentioned a distributor of Sehield-Bantam products under a written agreement with Koehring Company dated March 15, 1965. That agreement, in part, provided :

“(a) Products covered hereby are subject to the following warranty and no other: ‘Manufacturer warrants each new product made by manufacturer to be free from defects in material and workmanship, its obligation and liability under this Warranty being expressly limited to repairing, or, at Manufacturer’s option, replacing free of charge at its factory any part proving defective under normal use and service within six months or 1500 hours of operation, whichever period first expires after date of delivery to a customer as attested by Distributor. Parts claimed to be defective and for which repair or replacement is desired shall be, if requested by Manufacturer, returned transportation prepaid to Manufactuer’s factory for inspection. THIS WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE AND THE OBLIGATION AND LIABILITY OF MANUFACTURER UNDER THIS WARRANTY SHALL NOT INCLUDE ANY TRANSPORTATION OR OTHER CHARGES OR THE COST OF INSTALLATION OR ANY LIABILITY FOR DIRECT, INDIRECT OR CONSEQUENTIAL DAMAGES OR DELAY RESULTING FROM THE DEFECT. Any operation beyond rated capacity or the improper use or application of Product or the substitution upon it of parts not approved by Manufacturer or any alteration or repair by other in such manner as, in Manufacturer’s judgment, to affect the Product materially and adversely shall void this Warranty. No representative of Manufacturer is authorized to change this Warranty in any way, and no attempt, effort or promise to repair Products of Manufacturer, either by Manufacturer or by any representative of Manufacturer at any time shall change or extend this Warranty in any way. This Warranty covers only new and unused Products manufactured by Manufacturer. Products manufactured by others are covered only by such warranties as are extended to Manufacturer by its suppliers.’ (b) Distributor agrees to extend only the above Warranty to its [1347]*1347customers. In the event Distributor extends to its customers any additional warranty such as by extending the scope or period of warranty or undertaking a warranty of fitness for any particular purpose or any other obligation not encompassed in Manufacturer’s Warranty, then Distributor shall be solely responsible therefor and shall have no recourse against Manufacturer with respect thereto.”

In a series of conversations prior to October 25, 1965, the owners of Acme indicated to George McLean their requirements for a mobile crane and the use to which they intended to put such equipment. McLean then specifically recommended the purchase of the T350 crane mounted on the Model 306 carrier. The Model 306 is the carrier in question here. At no time during these conversations was Acme shown a copy of any written warranty applicable to this equipment, but George McLean did advise Acme that the equipment carried an unconditional six-month warranty against defective parts and workmanship.

On or about October 25, 1965, plaintiffs ordered the Schield-Bantam truck crane from General by signing and returning to General the written October 25, 1965, quotation received from General. Plaintiffs paid $1,000 to General with their order. When placing the order, plaintiffs changed the terms of the quotation to provide for their withholding payment of $3,822 until thirty days after receipt of the machine. The crane and carrier were delivered to plaintiffs in Anderson, Indiana, on or about November 8,1965.

Acme saw a written warranty applying to the crane for the first time on November 8, 1965. It was contained in two instruction books, one for the crane and one for the carrier, given to them at that time by George Bagarus, a foreman and serviceman for defendant’s distributor. Also at that time Mr. Bagarus spent two days in setting up the machine, checking it out, and giving instructions as to its operation and maintenance. At all times pertinent hereto, Acme restricted the operation of the unit to two of its employees and Gerald Schlossberg.

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Cite This Page — Counsel Stack

Bluebook (online)
333 F. Supp. 1345, 15 Fed. R. Serv. 2d 1193, 1971 U.S. Dist. LEXIS 10798, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schlossberg-v-koehring-co-wied-1971.