Stimpson Hosiery Mills, Inc. v. PAM Trading Corp.

392 S.E.2d 128, 98 N.C. App. 543, 12 U.C.C. Rep. Serv. 2d (West) 445, 1990 N.C. App. LEXIS 437
CourtCourt of Appeals of North Carolina
DecidedJune 5, 1990
Docket8922SC561
StatusPublished
Cited by8 cases

This text of 392 S.E.2d 128 (Stimpson Hosiery Mills, Inc. v. PAM Trading Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stimpson Hosiery Mills, Inc. v. PAM Trading Corp., 392 S.E.2d 128, 98 N.C. App. 543, 12 U.C.C. Rep. Serv. 2d (West) 445, 1990 N.C. App. LEXIS 437 (N.C. Ct. App. 1990).

Opinion

GREENE, Judge.

Plaintiff Stimpson Hosiery Mills, Inc. (“plaintiff”), appeals a jury’s counterclaim verdict for defendants PAM Trading Corporation and Officine Savio Matee, S.p.A. (“defendants”). Defendants appeal the jury verdict for plaintiff and denial of defendants’ motions for new trial, judgment notwithstanding the verdict, and remittitur.

*546 Plaintiff is a corporation that manufactures women’s hosiery. Defendants PAM and Matee are corporations which respectively manufacture and sell a brand of hosiery knitting machine, Veloce. Defendants placed a Veloce knitting machine in plaintiff’s plant in 1985, for plaintiffs trial-use evaluation of the machine’s capabilities. Plaintiff used the machine for approximately six months, after which plaintiff and defendants contracted for plaintiff to purchase 24 Veloce machines for the price of $172,000.00.

The machines were installed and operational by March, 1986. Plaintiff claimed that the machines began malfunctioning shortly after their installation, but kept the machines. Plaintiff refurbished its previously-owned knitting machines to produce more hosiery, and on 1 April 1987, plaintiff purchased 10 new knitting machines manufactured by defendants’ competitor.

Plaintiff filed a complaint against defendants, alleging breach of express warranty and implied warranty of fitness for a particular purpose, along with other bases for relief. Defendants answered, denying the allegations and counterclaiming for the unpaid purchase price plus interest. Plaintiff replied to defendants’ counterclaim, denying defendants’ right to the balance of the purchase price. The case came on for trial and both parties offered evidence.

At trial, plaintiff offered the testimony of one of plaintiff’s corporate officers, Mr. Stimpson. Mr. Stimpson testified:

... I made the statement that if we decided to purchase his machine, I would like for Mr. Arnie McKinney to be the one to set the machine up. . . . [Defendants’ sales representative] told me that I would get that wish to get Mr. McKinney to set up the machines.

At the jury instructions charge conference, defendants requested in writing that the trial court submit an issue and instruct the jury on plaintiff’s obligation to mitigate damages, according to the North Carolina Pattern Jury Instructions:

This issue reads:

“What amount, if any, of the damages sustained by [plaintiff] could have been avoided?”
The burden of proof on this issue is on [defendant] to satisfy you by the greater weight of the evidence that some *547 or all of the damages claimed by [plaintiff] could have been avoided.
A party injured by a breach of contract is required to protect [itself] from loss if [it] can do so with reasonable exertion or minimal expense. Ordinarily an injured party will not be allowed to recover from the delinquent party any damages which the injured party could have avoided with reasonable effort or minimal expense.
And so I finally instruct you that if you find, by the greater weight of the evidence, that some or all of the damages claimed by [plaintiff] could have been avoided with reasonable exertion or minimal expense on [its] part then you will answer this issue by writing that amount in the blank space provided. On the other hand, if you fail to so find, then you would answer this issue by writing the word “None” in the blank space provided.

N.C. Pattern Jury Instruction 571.20 (March 1974). The trial court instead submitted to the jury issue 5, set out below in pertinent part, noting that “I believe what I have included is included in the essence of mitigation of damages required by the plaintiff.”

The court submitted six issues to the jury, which answered them as follows:

1. Did the Defendants expressly warrant to the Plaintiff that the knitting machines were capable of running at 1200 RPM’s and that these knitting machines would be set up and would operate as the trial machine had been set up and operated?
ANSWER: Yes
2. If so, was the expressed warranty breached by the failure of the knitting machines to conform to the Defendants!’] affirmation of fact or promise about these machines?
ANSWER: Yes
3. Did the Defendants impliedly warrant to the Plaintiff that the knitting machines were fit for the particular purpose of making different styles and sizes of hose efficiently while running at a speed of at least 1000 RPM’s?
ANSWER: Yes
*548 4. If so, was the implied warranty of fitness for a particular purpose breached by the Defendants?
ANSWER: Yes
5. What amount of damages is the Plaintiff entitled to recover?
(1) For parts, labor and needles to refurbish and operate old machines
$16,900.00
(2) For goods returned, credit memos, down-sized goods and goods discarded before shipment
$1.00
(3) For new Lonati machines purchased in 1987
o se-
(4) For lost profits
$534,988.80 ■
6. What amount [are] the Defendants entitled to recover?
$143,672[.]10

The court instructed the jury that if it “answered either implied or [express] . . . warranty issues [2 or 4] in favor of the plaintiff . . . go on to the damage issue [5].” The court instructed the jury on issue 5 using this language:

[T]he burden of proof is ... on the plaintiff to prove to you that [it] has suffered damages by reason of breach of expressed or implied warranty on the part of defendants . . . the plaintiff has the burden of proving to you by the greater weight of the evidence that a breach of warranty was made by the defendants and that this was [a] proximate cause of [its] damages or loss . . . [h]owever, if damages or loss would have occurred whether or not the warranty was breached then these damages do not proximately result from a breach of warranty. If the plaintiff’s own neglect of the machines or failure to maintain or properly operate the knitting machines as a reasonable careful, prudent person in the hosiery industry would do was a proximate cause of the plaintiffs difficulties with the machines, *549 then its damages or loss would not he proximately caused by a breach of warranty. (Emphasis added.)

The jury returned its verdict on 1 November 1988, and on 10 November 1988, defendants filed post-verdict Rules 50 and 59 motions for judgment notwithstanding the verdict (j.n.o.v.) or alternately for new trial, or for remittitur of damages as to issues 1-5.

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

Related

State v. Ellis
696 S.E.2d 536 (Court of Appeals of North Carolina, 2010)
Lakeview Condominium Association v. Village of Pinehurst
647 S.E.2d 689 (Court of Appeals of North Carolina, 2007)
Jones v. Hubbard
740 A.2d 1004 (Court of Appeals of Maryland, 1999)
Johns v. Erhart
934 P.2d 701 (Court of Appeals of Washington, 1997)
Smith v. Childs
437 S.E.2d 500 (Court of Appeals of North Carolina, 1993)
City of Statesville v. Cloaninger
415 S.E.2d 111 (Court of Appeals of North Carolina, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
392 S.E.2d 128, 98 N.C. App. 543, 12 U.C.C. Rep. Serv. 2d (West) 445, 1990 N.C. App. LEXIS 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stimpson-hosiery-mills-inc-v-pam-trading-corp-ncctapp-1990.