Harris Moran Seed Co. v. Phillips
Alabama Court of Appeals
949 So. 2d 916 (2006)
- Written by Salina Kennedy, JD
Facts
Harris Moran Seed Company (HMSC) (defendant) produced tomato seeds and sold them to Clifton, a retailer. In its dealer agreement with Clifton, HMSC provided an express warranty of the seeds’ quality, and the agreement required Clifton to notify end users of HMSC’s warranty. Several farmers (plaintiffs) bought the seeds from Clifton and planted them, but the plants allegedly produced unmarketable tomatoes. The farmers sued HMSC for breach of contract, arguing that they were intended third-party beneficiaries of HMSC’s warranty of quality to Clifton. HMSC argued that the farmers were not entitled to recover because they were incidental, rather than intended, beneficiaries of the warranty. Trial testimony established that HMSC knew that if it sold defective seeds to retailers, end users would suffer significant economic losses. A jury found for the farmers, and HMSC appealed.
Rule of Law
Issue
Holding and Reasoning (Crawley, J.)
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