Court of Appeals of New Mexico
941 P.2d 978 (1997)
Dr. A. H. Manouchehri (plaintiff) contracted to purchase a used 100/100 x-ray machine from Jeff Heim (defendant) for $1,900. Manouchehri wrote “purchase and installation of Continental 100—100 x-ray” in the memo line and “guaranteed to work…without limitation” across the top of the check, which Heim signed. Heim installed a less powerful 100/60 x-ray. Manouchehri asked Heim to repair the machine. Heim sent an inspector and spoke with Manouchehri repeatedly but made no repairs. Manouchehri sued in district court for breach of warranty. Default judgment was entered in favor of Manouchehri then set aside. At trial, Manouchehri testified that he lost profits of $79 each on an average of 30 x-rays per month due to the breach. The court awarded Manouchehri $1,900 in direct damages and $2,500 in consequential damages (mislabeled incidental damages). The district court found that any value the machine held was lost due to the cost of removal. Heim’s motion for reconsideration was denied. Heim appealed to the Court of Appeals of New Mexico, arguing that the district court applied the wrong standard for direct damages and should not have awarded consequential damages because the losses were avoidable, unforeseeable, and indefinite.
Rule of Law
Holding and Reasoning (Hartz, J.)
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