Gared Holdings, LLC v. Best Bolt Products, Inc.

991 N.E.2d 1005 (2013)

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Gared Holdings, LLC v. Best Bolt Products, Inc.

Indiana Court of Appeals
991 N.E.2d 1005 (2013)

  • Written by Sharon Feldman, JD

Facts

Best Bolt Products, Inc. (BBP) (defendant) contracted with Gared Holdings, LLC (Gared) (plaintiff) to supply pulleys for basketball-backboard systems. Gared gave BBP samples of pulleys it had been using but did not provide specifications or request a particular lubricated part. BBP had another company manufacture the pulleys. Gared’s engineering manager did not dismantle the samples BBP sent or do a rotation test and assumed BBP knew pulleys required the lubricated part because it was standard in the industry. BBP made two sales of pulleys to Gared and was willing to sell more pulleys if it had a buyer. The pulleys BBP supplied lacked the lubricated part, causing them to seize up and stop turning. The engineering manager made a detailed drawing of a pulley in case Gared dealt with another supplier that did not ordinarily manufacture pulleys. Gared sued BBP for breaching the implied warranties of fitness for a particular purpose and merchantability. Ruling for BBP on both claims, the trial court found that BBP was a distributor and not a merchant and had made only one pulley sale, and that Gared failed to establish that it relied on BBP’s judgment in selecting an appropriate pulley. Gared appealed.

Rule of Law

Issue

Holding and Reasoning (Crone, J.)

Concurrence (Robb, C.J.)

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