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Dravo Equipment Co. v. German

698 P.2d 63 (1985)

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Dravo Equipment Co. v. German

Oregon Court of Appeals
698 P.2d 63 (1985)

  • Written by Mike Begovic, JD

Facts

Dravo Equipment Co. (Dravo) (plaintiff) sold a used tractor with a rebuilt engine to a rock-crushing business, Brooks, Boyer and Bismark (BB & B). As part of the sale, BB & B obtained an express warranty that was bargained for separately. The warranty covered up to 1,500 hours of usage. BB & B sold their business to Jerry German and Crocker Hunter (collectively, German) (defendants). While negotiating the sale, German was shown a copy of the express warranty for the tractor. German believed that the express warranty would cover its usage of the tractor. After the sale was finalized, the tractor engine failed. German took the engine to Dravo for repairs, but Dravo denied any obligations under the warranty. Dravo eventually replaced the engine and billed German, and German refused to pay. Dravo filed a nonpossessory lien and initiated a suit. German’s sole defense was the express warranty. The trial court sided with German, finding that it was entitled to enforce the warranty. Dravo appealed, contending that German could not enforce the warranty because it was not privy to the initial transaction.

Rule of Law

Issue

Holding and Reasoning (Rossman. J.)

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