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NEC Technologies Inc. v. Nelson

478 S.E. 2d 769 (1996)

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NEC Technologies Inc. v. Nelson

Georgia Supreme Court
478 S.E. 2d 769 (1996)

  • Written by Mike Begovic, JD

Facts

Arthur and Kathy Nelson (plaintiffs) purchased a television set from Curtis Mathes Home Entertainment Center (Curtis Mathes) (defendants) that was manufactured by NEC Technologies Inc. (NEC) (defendant). In doing so, they traded in their old set for a discount. The warranty on the television set provided for the repair and replacement of defective parts, but it excluded incidental and consequential damages. The language outlining the warranty was clear and conspicuous. After the television set started a fire causing property damage, the Nelsons filed suit against Curtis Mathes and NEC, bringing causes of action in strict liability, negligence, and breach of warranty. Curtis Mathes moved for partial summary judgment on the Nelsons’ property-damage claim, arguing that consequential damages were excluded by the warranty. A trial court agreed and granted the motion. The court of appeals reversed on the grounds that the warranty’s exclusion of consequential damages was unconscionable in violation of Official Code of Georgia Annotated (OCGA) § 11-2-719. Curtis Mathes appealed.

Rule of Law

Issue

Holding and Reasoning (Hunstein, J.)

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