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Smith v. Navistar International Transportation Corporation

United States Court of Appeals for the Seventh Circuit
957 F.2d 1439 (1992)


Smith wanted to purchase a new truck. After researching and negotiating with several dealers, Smith purchased a truck from Navistar International Transportation Corporation (Navistar) (defendant). The sale contract included a warranty provision requiring Navistar to repair or replace defective parts of the truck. The contract specifically excluded: (1) all other warranties and (2) the remedy of consequential damages for any breach. The truck’s brake system had significant problems, and Smith had to take the truck to be repaired 10 times in six months. Although the warranty covered all the repair costs, the continual servicing interfered with Smith’s livelihood as a trucker. Eventually, Smith lost his employment contract. Smith revoked his acceptance of the truck and stopped making payments on it. Smith sued Navistar for breach of contract and sought consequential damages for the lost employment contract. Navistar moved for summary judgment. The district court granted the motion in part and entered an order limiting damages to, at most, the amount Smith paid for the truck: $19,527.70. Smith appealed.

Rule of Law


Holding and Reasoning (Coffey, J.)

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