Whittlestone, Inc. v. Handi-Craft Company 2008 WL 4963053 (USDC, N. D. Ca. Nov. 19, 2008) Buyers and sellers often limit the damages recoverable for breach contract in sale of goods cases. Under UCC 2-709(3) such limitations are enforceable, with exceptions for...
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Year: 2008
Sun-Dried Tomatoes, Anyone? Seller Recovery on Buyer Breach: Damages Based on A Lost-Volume Seller Theory UCC 2-702(2)
Culinary Farms, Inc. v. Mooney, 2008 WL 4889621 (Cal. App 3 Distr. Nov. 13, 2008) (Not Officially Published- Non Citable) This case concerned the appropriate measure of damages where a buyer failed to complete the purchase of sun-dried tomatoes. Although the seller...
Unsecured Creditor’s Levy on Deposit Account Defeats Prior Secured Creditor–UCC 9-332(b)
In a reported case of first impression under California law, the California Court of Appeal, First District, Division 5 ruled that an unsecured creditor's garnishment or levy on funds in a deposit account will defeat the prior secured creditor. Orix Financial...
UCC Warranty Limitations–New Article in Orange County Lawyer Magazine
Our blogger Gregory E. Robinson published an article in the October 2008 edition of Orange County Lawyer Magazine, the official publication of the Orange County [California] Bar Association. "Beyond the Battle of the Forms--UCC Warranty Limitations: 'How to Make 'Em...
Implied and Express Warranty Claims: Duck Feet Have No Class
The Central District of California recently denied class certification in a lawsuit alleging breach of express warranty and implied warrant of merchantability. Gable v. Land Rover of North America, 2008 WL 4441960 (C. D. Cal. Sept. 29, 2008)--not reported in F. Supp....
Statute of Limitations—Student Loans—6 years under Section 3-118
When enforcing or defending an action on a promissory note, remember that the UCC may specify a longer statue of limitations. A student borrower tried to block enforcement of her student loans by asserting the basic 4-year statute of limitations for breach of written...
Arbitration Wars and the UCC – Unconscionability and Limits on the Arbitrator’s Powers
A recent California appeals court decision highlighted some interesting issues concerning the interplay between arbitration and the Uniform Commercial Code. The case is J.C. Gury Company v. Nippon Carbide Insurance (USA) Inc. (2007) 152 Cal. App. 4th 1300, 62 Cal....
When your Mercedes-Benz C320 lurches, smells and clanks, check your “implied warranty” under Sections 2-314 and 2-315
An interesting appellate case upheld a jury verdict in favor of a woman who bought a new Mercedez-Benz C320. Isip v. Mercedes-Benz USA, LLC, (Sept. 12, 2007; Review Denied Nov. 28, 2007) 155 Cal. App. 4th 19. The buyer’s new car soon car began to issue...
Judges Are Not Like Pigs: UCC 2-725 allows short 1-year statute of limitations for breach of warranty claim
What is the statute of limitations for breach of warranty claims? Under UCC 2-725 (1), the default limitations period is the later of four years from the breach, or one year from discovery. The parties can substitute a shorter limitations period (at least in...
UCC § 4A-505. Zengen is a Zinger! Recovering money taken with an unauthorized payment instruction.
UCC § 4A-505 requires a bank customer to “notify the bank of the customer’s objection” within one year. Suppose your company employee forges the CEO’s name and faxes the bank payment instructions directing the bank to transfer funds into the employee’s own account....