Subscribe Transamerica Oil Corporation, Plaintiff-appellee, v.
David Egan, Peabody, Kan.
We must determine, under the Kansas Uniform Commercial Code UCCthe appropriate statute of limitations and the effect and validity of disclaimers of warranties and limitations of remedies in invoices accompanying shipments of equipment.
Transamerica's president, Harold Brown, saw defendants' advertisement for "production injection packers" in a trade journal. A packer is a device inserted into an oil and gas well to seal off one zone from another, generally to stop water from entering the well bore and interfering with production.
Frequently, packers are employed for temporary use in holes that have been cased and cemented. Because Brown wanted to avoid the expensive casing and cementing process he was interested in the advertised device. He telephoned Lynes and spoke with a sales representative.
Lynes then sent Brown additional advertising and descriptive literature. This literature also stated that the production injection packer was suitable for use as a permanent completion device in open well holes. The substance of that conversation is controverted. Spencer testified that he replied, "I think they would be applicable.
Each invoice contained language on its reverse side disclaiming any express or implied warranties other than that the products were free from defects in materials and workmanship.
Each invoice also purported to limit the purchaser's remedy to replacement of or credit for defective equipment or parts. Plaintiff later filed suit, claiming that the production injection packers failed to perform properly. At trial, plaintiff dropped its claim based on implied warranty and submitted to the jury only its claim based on breach of express warranty.
The Kansas statute of limitations generally applicable to suits on oral contracts is three years. For actions brought pursuant to the UCC, however, the statute of limitations is four years. Miller held that the three-year statute for oral contracts, rather than the five-year statute for written contracts, applied to an agreement that was partly in writing and partly oral.
However, Miller involved a rental rather than a sale of equipment, and apparently the parties did not contend that the UCC applied. The instant case involves a sale of goods within the meaning of the UCC, Kan.
Therefore, the Code's four-year statute of limitations applies. See Atlas Industries, Inc. National Cash Register Co.1. This appeal arises out of a diversity action in which the plaintiff, Transamerica Oil Corporation, prevailed in a jury trial against Baker International Corporation and its subsidiary, Lynes Inc., for damages resulting from the breach of an express warranty.
Transamerica Oil Corporation, Plaintiff-appellee, v. Lynes, Inc. and Baker International Corporation,defendants-appellants, F.2d (10th Cir.
) case opinion from the US Court of Appeals for the Tenth Circuit. Falconer Glass-1 DALE R. HORNING CO.
v. FALCONER GLASS INDUSTRIES, INC. F.
|Document Info||Procedural History Transamerica Oil Corporation, who conducts oil and gas drilling, solicited Lynes Incorporated about their advertisement regarding an injection packer and decided to purchase several of them only to determine that they did not function as advertised. The production injection packers did not perform as advertised.|
|TransAmerica Oil Case Study||David Egan, Peabody, Kan. Advertisement 1 This appeal arises out of a diversity action in which the plaintiff, Transamerica Oil Corporation, prevailed in a jury trial against Baker International Corporation and its subsidiary, Lynes Inc.|
Supp. (S.D. Ind. ) McKINNEY, District Judge. This cause comes before the Court after a two day bench trial on the merits on December. Transamerica's president, Harold Brown, saw defendants' advertisement for "production injection packers" in a trade journal.
A packer is a device inserted into an oil and gas well to seal off one zone from another, generally to stop water from entering the well bore and interfering with production. TransAmerica Oil Corporation v. Lynes, Inc & Baker International Corporation Case Brief Issue: This is a case of breach of an express warranty, subsequent decision, and appeal in the State of Kansas and the issue is whether or not breach of an express warranty warrants an award of damages under the Uniform Commercial Code.
Transamerica then took Lynes Inc to court for monetary damages arguing that Lynes had breached the contract of express warranty and liability regarding the product.
Consequently, the United States District Court for the District of Kansas through a trial jury awarded Transamerica, the plaintiff $, for damages, much more than the.