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Klehr v. A.O. Smith Corp.

United States Supreme Court
521 U.S. 179 (1997)


Facts

Marvin and Mary Klehr (plaintiffs) purchased a Harvestore brand silo in 1974 from A.O. Smith Corporation (the Company) (defendant). The Klehrs purchased this silo due to representations from the Company that the silo would limit the amount of oxygen in contact with the stored feed, which would prevent moldy and fermented feed. This would produce healthier cows, more milk, and higher profits. The Klehrs allege that the Company made additional representations regarding the silo over a period of many years following 1974. In 1991, the Klehrs discovered that the silo did not perform as represented. The Klehrs sued the Company in 1993, alleging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) based on mail and wire fraud.

Rule of Law

Issue

Holding and Reasoning (Breyer, J.)

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