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Schurtz v. BMW of North America

Utah Supreme Court
814 P.2d 1108 (1991)


Facts

Hugh Schurtz (plaintiff) purchased a vehicle from BMW of North America (BMW) (defendant). The vehicle came with a limited warranty that gave BMW the sole discretion to repair or replace the vehicle. Additionally, the warranty disclaimed incidental and consequential damages for any breach of the warranty. Schurtz experienced problems with his vehicle and BWM refused to repair or replace the car. Schurtz filed suit for breach of the warranty seeking damages, including incidental and consequential damages. Schurtz argued that under Utah law, where a warranty fails its essential purpose then a provision excluding incidental and consequential damages is invalid. Conversely, BMW argued that a provision excluding incidental and consequential damages only fails when it is unconscionable. The trial court upheld the provision excluding incidental and consequential damages granting BMW’s partial motion for summary judgment. Schurtz appealed.

Rule of Law

Issue

Holding and Reasoning (Zimmerman, J.)

Concurrence/Dissent (Stewart, J.)

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