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Hydra-Mac, Inc. v. Onan Corp.

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Hour Meter currently at showing - this is subject to change. The purchaser agrees that the seller shall not be held responsible or liable for any injuries or damages, whether incidental or consequential, associated in any way with the equipment. The purchaser, by bidding on this equipment, acknowledges and agrees to the terms of this disclaimer. Shipping and handling. The seller has not specified a shipping method to Germany.

Contact the seller - opens in a new window or tab and request shipping to your location. Shipping cost cannot be calculated. Please enter a valid ZIP Code. Shipping to: United States. No additional import charges at delivery! This item will be shipped through the Global Shipping Program and includes international tracking. Learn more - opens in a new window or tab. There are 1 items available. Please enter a number less than or equal to 1. Select a valid country.

Please enter 5 or 9 numbers for the ZIP Code. Taxes may be applicable at checkout. Learn more. Return policy. Refer to eBay Return policy for more details. Payment details. Other offers may also be available. Interest will be charged to your account from the purchase date if the balance is not paid in full within 6 months. Minimum monthly payments are required. Subject to credit approval. Wilson told the engineers that Hydra-Mac's potential loss, although small for Onan, was large for Hydra-Mac. Finally, Anderson testified that in mid, he told Onan executives, after he had studied the engine for only a day, that the NHCV had incurable design problems.

In response, Onan told Anderson to design "band-aid fixes" as problems arose rather than having him redesign the entire engine immediately; hence, Onan's fix program. Anderson also testified that his engineering group began to design three new engines to replace the NHCV, but Onan later cancelled the design program. Onan continued to propose fixes and to tell Hydra-Mac that it would fix the engines. Hydra-Mac and IH each presented expert testimony on the amount of their lost profits. Onan did not offer any rebuttal evidence.

On appeal, Onan argues the trial court erred in its finding that Onan's disclaimer did not apply to Hydra-Mac or IH and that Onan waived the statute of limitations defense. Onan also contends that the trial court erred in finding that Onan made fraudulent promises to repair through , concealed the irreparable nature of the NHCV engine until , and induced both respondents to detrimentally rely on Onan's promises to fix the engines. Finally, Onan challenges the trial court finding that there was sufficient evidence to support the jury's damage awards. Did the trial court err in deciding waiver precluded application of the statute of limitations?

Was there sufficient evidence to support the jury's award of lost profits and punitive damages? The language of a contract should be interpreted in the context of the entire agreement.

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Oja, Minn. Onan asserts that the trial court erred in finding that the disclaimer did not apply to Hydra-Mac. Onan and Hydra-Mac agree that the first line of the disclaimer extends Onan's limited warranty to the ultimate user consumer of the NHCV's. The dispute centers around whether "Purchaser" refers only to the ultimate user or if it also refers to Hydra-Mac. Onan claims that "Purchaser" refers to Hydra-Mac and, as a result, the remainder of the disclaimer applies to Hydra-Mac.

The trial court found the plain meaning of the disclaimer to be that it applied only to ultimate users. We agree.

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Paragraphs one through five and seven through fifteen of the invoice refer to Hydra-Mac as "Buyer. Paragraph 6A addressed the "purchaser of goods for use," not the "Buyer. Onan's contention that it would be illogical to provide a copy of the disclaimer to Hydra-Mac if it did not also apply to Hydra-Mac does not alter the language of the disclaimer. Onan concedes its limited warranty did not cover Hydra-Mac.

The disclaimer states that the ultimate user was covered by the limited warranty.

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To claim that the rest of the disclaimer applied to Hydra-Mac, a party that would not be the ultimate user, and thus, not covered by the disclaimer, is illogical. Even if the disclaimer applied to Hydra-Mac, inconsistent express warranties made by Onan control. An express warranty may be created by:. The jury found that Onan made express warranties to Hydra-Mac. The words or conduct of an express warranty should, whenever reasonable, be construed as consistent with each other.

When words of an express warranty and a disclaimer cannot be reconciled, the language of the express warranty must prevail. Wenner v. Gulf Oil Corp. See also Northern States Power Co. Northern States Power Co. Onan also made later warranties about its ability to repair the engines. We believe Onan's express warranties, made before and after the parties' agreement, bind Onan.

Nevertheless, even if the disclaimer applied to Hydra-Mac, we believe the jury's finding of fraud supports the entire verdict. The jury found by special verdict that Onan had breached express warranties and committed fraud.

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Fraud is unique in that proof of some form of misrepresentation is essential. Croix Printing Equipment, Inc. Rockwell International Corp. App It would be a distortion in the law if a cause of action for fraud could not be asserted where a contract validly disclaimed all warranties. The remedies for fraud, however, include all of the remedies available in breach of warranty cases. They also include punitive damages in appropriate cases.

Onan fraudulently concealed the true nature of the NHCV. Hydra-Mac may recover lost profits and punitive damages for fraud regardless of the disclaimer. Onan argues that the disclaimer on the invoices sent to Hydra-Mac applies to International Harvester as a third party beneficiary. No Minnesota court has interpreted the effect of a warranty disclaimer on a third party beneficiary of a contract. Sheridan Iron Works, Inc.

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In Western Equipment, the Wyoming court held that the Wyoming statute identical to section See also U. Disclaimers in a contract of sale may be equally operative against third party beneficiaries. However, the disclaimer in this case did not apply to Hydra-Mac.