Palmer v. Idaho Peterbilt, Inc.

Richard Palmer (plaintiff) entered into a contract with Idaho Peterbilt, Inc. (the seller) (defendant) for a specially built truck. After the first truck was stolen, Palmer and the seller formed an oral agreement for a new truck. Palmer provided a $500 deposit. After numerous production delays, Palmer became impatient, and the seller grew concerned about Palmer’s ability to pay. Eventually, the seller contacted Palmer via written letter to inform him that the relationship was terminated and returned his $500 deposit. Palmer accepted the return of his deposit, but he sued for damages a few months later. The Idaho Uniform Commercial Code (IUCC) recognized recission and waiver, but it provided that existing general principles of law could only supplement the IUCC if the principles were not explicitly displaced by IUCC provisions. Under Idaho Code (I.C.) § 28-2-711, a buyer, after receiving a refund of what he paid, was still entitled to additional remedies. I.C. § 28-2-610 allowed a buyer to pursue damages at any time, notwithstanding the buyer’s own silence or inaction. The seller argued that, under the general principles of recission and waiver, Palmer was not entitled to additional damages after receiving his deposit back and, alternatively, that Palmer’s failure to object constituted a waiver. The trial court awarded Palmer additional general damages. The seller appealed.