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Kearney & Trecker Corp. v. Master Engraving Co.

Supreme Court of New Jersey
527 A.2d 429 (1987)


Master Engraving Company (Master) (plaintiff) purchased a Milwaukee-Matic 180 (MM-180) from the manufacturer, Kearney & Trecker Corporation (K&T) (defendant). The MM-180 was a complex, computer-controlled machine tool that could perform automatic machining on metal parts. Master and K&T entered into an agreement for the purchase and sale of the MM-180 for $167,000. The agreement contained both a repair and replacement warranty and an exclusion of consequential damages. The MM-180 did not perform as warranted, and Master sued K&T for breach of the contract. Master sought to recover damages from lost profits 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 trial court entered a judgment affirmed the jury’s verdict of $57,000.

Rule of Law


Holding and Reasoning (Stein, J.)

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