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Lumber Mutual Ins. Co. v. Clarklift of Detroit

Michigan Court of Appeals
569 N.W.2d 681 (1997)


Facts

Clarklift of Detroit (Clarklift) (defendant) rented a used forklift to Heart Truss & Engineering Corporation (Heart) for three months. At that point, Heart decided to buy the forklift from Clarklift. At the bottom of Clarklift’s handwritten work order for the forklift sale, set off by itself, was the phrase “as is.” Further, the first page of Clarklift’s purchase invoice for the forklift stated, “WARRANTY: AS IS, NO WARRANTY.” The purchase invoice also contained a short list of information in capital letters, including the “as is” language. A few months later, the forklift caused two fires at Heart’s factory. Heart’s insurance company, Lumber Mutual Insurance Co. (Lumber) (plaintiff), covered Heart’s losses. Lumber then sued Clarklift to recover the amount Lumber had paid to Heart under the insurance policy, arguing that Clarklift was responsible for implied warranties covering the forklift. Clarklift filed a motion for summary judgement on the basis that the “as is” disclaimer removed any implied warranties from the contract. The trial court ruled in favor of Clarklift. Lumber appealed.

Rule of Law

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Issue

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Holding and Reasoning (Per Curiam)

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  • A “yes” or “no” answer to the question framed in the issue section;
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  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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