Wasatch Transportation v. Forest River

53 F.4th 577
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 15, 2022
Docket21-4107
StatusPublished

This text of 53 F.4th 577 (Wasatch Transportation v. Forest River) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wasatch Transportation v. Forest River, 53 F.4th 577 (10th Cir. 2022).

Opinion

Appellate Case: 21-4107 Document: 010110768882 Date Filed: 11/15/2022 Page: 1 FILED United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS November 15, 2022 Christopher M. Wolpert FOR THE TENTH CIRCUIT Clerk of Court ____________________________________________

WASATCH TRANSPORTATION, INC.,

Plaintiff - Appellant,

v. No. 21-4107

FOREST RIVER, INC., d/b/a Glaval Bus,

Defendant - Appellee. _____________________________________________

Appeal from the United States District Court for the District of Utah (D.C. No. 2:17-CV-00752-HCN) ______________________________________________

Matthew N. Evans (Carol A. Funk and Whitney Hulet Krogue, with him on the briefs), Ray Quinney & Nebeker P.C., Salt Lake City, Utah, for Plaintiff-Appellant.

John D. Papageorge, Taft Stettinius & Hollister LLP, Indianapolis, Indiana (Nadine E. McSpadden, Taft Stettinius & Hollister, and Andrew D. Wright and Scarlet R. Smith, Strong & Hanni, P.C., Salt Lake City, Utah, with him on the briefs), for Defendant-Appellee. ______________________________________________

Before HOLMES, BACHARACH, and PHILLIPS, Circuit Judges. _______________________________________________

BACHARACH, Circuit Judge. _________________________________________ Appellate Case: 21-4107 Document: 010110768882 Date Filed: 11/15/2022 Page: 2

The English language is full of words with possibilities for multiple

meanings based on the context. An example is the word warranty, which

can refer to the length of the protection, the parts and functions that are

covered, or the available remedies. For example, a car manufacturer might

refer to its warranty as one for 5 years or 100,000 miles. But the

manufacturer might also refer to a warranty based on the parts that are

covered or the available remedies. For instance, a manufacturer might refer

to its warranty as one covering only repair costs.

If a customer testifies that he saw the manufacturer’s warranty, was

he referring to the length, the covered parts or functions, or the remedies?

Here the district court assumed that the customer must be referring to the

covered parts and the available remedies. But that assumption may be

wrong; the customer could have been using the word warranty to refer to

the duration.

I. Wasatch Transportation buys three buses from Forest River, Inc.

The meaning of the word warranty figures prominently in this

appeal. A transportation company (Wasatch Transportation, Inc.) needed

three buses to comply with a state contract. Compliance required

particularly durable buses because the routes would exceed 350 miles in

inclement weather with substantial changes in elevation.

2 Appellate Case: 21-4107 Document: 010110768882 Date Filed: 11/15/2022 Page: 3

To carry out the state contract, Wasatch considered buying Synergy

buses from the manufacturer (Forest River, Inc.). 1 A Wasatch executive

spoke with Forest River’s sales personnel, who allegedly said that the

Synergy buses

 could handle the route,

 would be a great fit for the route,

 were great buses, and

 were “[q]uality buses” that Forest River “would take really good care of” and would “be amazing when they were done.”

Appellant’s App’x vol. 2, at 263–65. Wasatch bought three Synergy buses

from Forest River, allegedly based on these assurances about the buses.

II. Forest River provides written warranties for fraud and breach of warranty.

For each bus, Forest River provided a warranty packet containing

three limitations:

1. The warranty covered only repair costs.

2. The warranty was exclusive, taking the place of other possible warranties.

3. The warranty provided the buyer’s only remedy for defects under any legal theory.

Id. at 444–45.

1 Forest River does business as “Glaval Bus.” 3 Appellate Case: 21-4107 Document: 010110768882 Date Filed: 11/15/2022 Page: 4

III. After the buses break down, Wasatch sues Forest River for fraud and breach of warranty.

After the purchase, the buses developed mechanical problems.

According to Wasatch, one bus broke down within 300 miles of Forest

River’s facility. Even after the bus was repaired, it continued to break

down. Another bus broke down soon after the purchase and was usable

only a third of the next year. Given the breakdowns, Wasatch allegedly had

to buy another bus to comply with the state contract; but the state

cancelled the contract anyway. Complaining of the cancellation and the

cost of buying another bus, Wasatch sued Forest River for

 breach of an express warranty that the buses were suitable for the route,

 breach of an implied warranty of fitness for a particular purpose, and

 fraud. 2

IV. The district court grants summary judgment to Forest River.

The district court granted summary judgment to Forest River,

reasoning that its warranty packet prevented any relief.

The court relied on deposition testimony from the Wasatch executive

who had met with Forest River personnel before buying the buses. In the

deposition, the executive acknowledged that he’d asked about the warranty

2 In district court, Wasatch also claimed negligent misrepresentation. But this claim isn’t involved in the appeal.

4 Appellate Case: 21-4107 Document: 010110768882 Date Filed: 11/15/2022 Page: 5

and conducted his own research. Given the executive’s testimony, the court

concluded that “a reasonable factfinder would be required to find . . . that

[the executive] had the opportunity to review Forest River’s written

limited warranty and was aware of its terms prior to the purchase.”

Appellant’s App’x vol. 5, at 1205.

In the court’s view, Wasatch’s knowledge of the warranty packet

prevented recovery. For the claims involving breach of warranty, the court

reasoned that the warranty packet had

 expressly excluded oral warranties and

 omitted a warranty of fitness for a particular purpose.

For the fraud claim, the court reasoned that Wasatch

 had known of limitations in the warranty packet and

 could not have reasonably relied on Forest River’s statements.

V. We apply the summary-judgment standard based on case law from Utah and Indiana.

We conduct de novo review of the district court’s grant of summary

judgment. Murphy v. City of Tulsa, 950 F.3d 641, 643 (10th Cir. 2019). In

conducting this review, we consider the evidence in the light most

favorable to Wasatch. Id. We may affirm only if no genuine dispute of

material fact exists and Forest River is entitled to judgment as a matter of

law. Fed. R. Civ. P. 56(a); Simpson v. Univ. of Colo. Boulder, 500 F.3d

1170, 1174 (10th Cir. 2007).

5 Appellate Case: 21-4107 Document: 010110768882 Date Filed: 11/15/2022 Page: 6

In district court, the parties disputed the applicability of Utah law or

Indiana law. The district court declined to address this dispute, relying on

the similarities in the states’ case law. Given these similarities, we also

decline to decide whether Utah law or Indiana law applies. See Dummar v.

Lummis, 543 F.3d 614, 619 (10th Cir.

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Bluebook (online)
53 F.4th 577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wasatch-transportation-v-forest-river-ca10-2022.