United States Court of Appeals
Tenth Circuit, 1983
723 F.2d 758
Procedural History: Trans America Oil Corporation filed a lawsuit against Lynes Inc for breach of an express warranty under the Kansas Uniformed Commercial Code. The trial court ruled in favor of the appellant. The defendants appealed and the Tenth Circuit of Appeals reversed and remanded the decision.
Facts: Transamerica filed a lawsuit against Baker International Corporation and its subsidiary Lynes Inc for damages due to the breach of an express warranty. Lynes Inc had an advertisement in a trade journal for production injection packers. The production injection packer is a device inserted in an oil and gas well to seal off one zone from another to stop the flow of water from entering the well bore and interfering with the production. The advertisement was seen by Transamerica’s president, Harold Brown. Mr. Brown was interested in the product because the advertisement stated the production injection packer was suitable for permanent use. Tansamerica Oil Corporation could avoid using an expensive casing and cementing process with the use of the production injection packers. Mr. Brown called Lynes Inc and a representative sent him additional advertisement and literature that stated the production injection packers could be used as a permanent completion device.
Mr. Brown contacted Bakers District Manager Jack Spencer. Mr. Brown stated Mr. Spencer assured him the production injection packers would work as advertised. Mr. Spencer maintains he said “ I think they would be applicable” . Based on their conversation Mr. Brown purchased ten production injection packers in six shipments. The plaintiff received five invoices with the shipment. On the reverse side of the invoices was a disclaimer that stated there was no express or implied warranties other than the product was free from defects. In addition the invoices limited the purchasers remedy to replacement or credit. The plaintiff filed a suit alleging the production injection packers failed to perform properly. The defendant asserted the claimant was barred by federal statute from filing a suit because it was not timely. The jury awarded the plaintiff $196,577.62 for breach of…