City National Bank of Charleston v. Wells
West Virginia Supreme Court of Appeals
181 W. Va. 763, 384 S.E.2d 374 (1989)
A Toyota dealership (defendant) warranted the new truck it sold to Leonard Wells (defendant). The dealership knew Wells intended to use the truck in his construction business. City National Bank of Charleston (bank) (plaintiff) financed the purchase. The truck proved to be a lemon that was unsuitable for work use. Wells returned the truck to the dealership and ceased making loan payments. The bank sued Wells for default and reported Wells to a credit bureau, which lowered Wells’s credit rating. As a result of his impaired credit, Wells was unable to buy the equipment he needed for a construction job and had to rent substitute equipment from other contractors. The bank settled with Wells after learning that his revocation of the truck’s acceptance complied with West Virginia’s Uniform Commercial Code (UCC) § 2-608. In the meantime, Wells brought the Toyota dealership into the case as a third-party defendant. The trial jury awarded Wells substantial damages for the extra business costs Wells incurred as a consequence of the dealership’s breach of warranty. The dealership appealed to the West Virginia Supreme Court of Appeals.
Rule of Law
Holding and Reasoning (Miller, J.)
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