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Schroeder v. Fageol Motors

Supreme Court of Washington
544 P.2d 20 (1975)


Facts

John Schroeder (plaintiff) bought a used truck from Fageol Motors, Inc. (Fageol) (defendant) to be used in Schroeder’s business. The truck was still under the original warranty as set out in an “owner book.” Fageol did not go through the owner book with Schroeder or explain the warranties and disclaimers to Schroeder. The written warranty provided an exclusionary clause in normal-sized print stating that Fageol would not be liable for special or consequential damages. Several months after the purchase, the truck’s engine exploded. The truck never functioned properly after that point, despite numerous attempted repairs by Cummins Engine Company, Inc. (Cummins) (defendant) and Fageol. Schroeder sued Fageol and Cummins for breach of warranty. The trial court denied Fageol’s claim that Fageol was protected from consequential damages by the warranty’s exclusionary clause. The trial court relied on Berg v. Stromme, 484 P.2d 380 (1971), which held that warranty disclaimers must be negotiated between the parties and set forth with particularity in a conspicuous manner, and found that this had not been done in the warranty from Fageol. The court of appeals affirmed. Fageol appealed.

Rule of Law

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Issue

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Holding and Reasoning (Hunter, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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