Ajax Tool Works, Inc. v. Can-Eng Manufacturing Ltd.

2003 WL 223187 (2003)

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Ajax Tool Works, Inc. v. Can-Eng Manufacturing Ltd.

United States District Court for the Northern District of Illinois
2003 WL 223187 (2003)

Facts

The Canadian company Can-Eng Manufacturing Ltd. (Can-Eng) (defendant) entered into a contract with the American company Ajax Tool Works, Inc. (Ajax) (plaintiff) for the sale and purchase of a factory furnace. The contract expressly warranted that Can-Eng’s furnace would meet specified performance standards. The contract also contained a limited warranty that obligated Can-Eng to repair furnace defects for only 90 days after delivery. After that period had expired, and over the next four years, Ajax repeatedly complained to Can-Eng that the furnace’s failure to perform as promised was causing costly production problems. Can-Eng responded to these complaints by attempting to remedy matters at no cost to Ajax. When these attempts proved unsuccessful, Ajax sued Can-Eng in federal district court, alleging breach of express and implied warranties. The court applied Ontario law and the United Nations Convention on Contracts for the International Sale of Goods (CISG) to the case. The court granted Can-Eng’s motion to preclude Ajax from recovering consequential damages. The court then turned to Can-Eng’s motion for summary judgment.

Rule of Law

Issue

Holding and Reasoning (Holderman, J.)

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