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Kearney & Trecker Corp. v. Master Engraving Co.

527 A.2d 429 (1987)

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Kearney & Trecker Corp. v. Master Engraving Co.

New Jersey Supreme Court

527 A.2d 429 (1987)

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Facts

Kearney & Trecker Corporation (K&T) (plaintiff) was the manufacturer of the Milwaukee-Matic 180 (MM-180), a complex, computer-controlled machine tool that could perform automatic machining on metal parts. Kearney sold an MM-180 to Master Engraving Company (Master) (defendant) for $167,000. The parties' agreement contained a repair-and-replacement warranty and an exclusion of consequential damages. The MM-180 did not perform as warranted. After the machine’s warranty expired, Master made a number of service calls to K&T and refused to pay for them. K&T filed suit in a New Jersey trial court to recover the payments, and Master filed a counterclaim to recover lost-profit damages caused by the malfunctions of the MM-180. The trial court instructed the jury that Master could be awarded consequential damages if K&T had failed to make the MM-180 as warranted. The jury returned a verdict for Master and awarded $57,000 in damages. The New Jersey Supreme Court then granted review.

Rule of Law

Issue

Holding and Reasoning (Stein, J.)

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