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Pierce v. Catalina Yachts, Inc.

Alaska Supreme Court
2 P.3d 618 (Alaska 2000)



Jim and Karen Pierce (plaintiffs) bought a yacht from Catalina Yachts, Inc. (Catalina) (defendant). A pre-printed limited warranty, drafted by Catalina, provided that Catalina would repair any blisters in the hull’s coat, but disclaimed any responsibility for consequential damages. The Pierces discovered blisters in the hull’s coat and repeatedly requested that Catalina repair or pay for repairs of the hull. Catalina refused, and the Pierces sued. The superior court held that the warranty’s bar on consequential damages was not unconscionable, and limited the Pierces recovery to the cost of repair. The jury found that Catalina had breached the warranty, that the Pierces could not have avoided their damages, and that Catalina acted in bad faith in refusing to honor its warranty obligations. The jury awarded the Pierces their repair costs. The Pierces appealed the superior court’s denial of their consequential damages claim.

Rule of Law


Holding and Reasoning (Bryner, J.)

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