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TeeVee Toons, Inc. v. Gerhard Schubert GmbH
United States District Court for the Southern District of New York
2006 WL243537 (2006)
Steve Gottlieb, the president of TeeVee Toons, Inc. (TVT) (plaintiff) invented the Biobox, a biodegradable cardboard package for audio and video cassettes. TVT entered a contract with Gerhard Schubert GmbH (Schubert) (defendant), a German company, to build a manufacturing system for the Biobox. The contract included a Terms and Conditions attachment. This attachment contained a provision that excluded the implied warranties of Article 35(2)(a)-(b) of the United Nations Convention on Contracts for the International Sale of Goods (CSIG). The attachment also contained a merger clause that specifically disclaimed any oral agreements. However, Schubert had made several statements to TVT to the effect that the Terms and Conditions attachment was for other deals and did not apply to the Biobox deal. Ultimately, Schubert was late delivering the Biobox manufacturing system, and the system operated poorly. TVT sued Schubert for, among other things, breach of the implied warranties contained in Article 35(2)(a)-(b) of the CSIG. Schubert moved for summary judgment, arguing that the Terms and Conditions provision in the attachment excluded any coverage under the CISG’s implied warranties. TVT responded that Schubert and TVT had an express oral understanding that the boilerplate Terms and Conditions provision was not part of the parties’ final agreement.
Rule of Law
Holding and Reasoning (Casey, J.)
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