[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

________________________

No. 15-10713

________________________

D.C. Docket No. 9:13-cv-80283-KLR

GLOBAL QUEST, LLC, 

Plaintiff –

Counter Defendant –

Appellant,

versus

HORIZON YACHTS, INC, 

HORIZON GROUP, et al.,

Defendants –

Counter Claimants –

Appellees.

________________________

Appeal from the United States District Court

for the Southern District of Florida

________________________

(February 24, 2017)

Before MARCUS and FAY, Circuit Judges, and FRIEDMAN,∗ District Judge.

 ∗ Honorable Paul L. Friedman, United States District Judge for the District of Columbia, 

sitting by designation.

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FRIEDMAN, District Judge: 

Plaintiff Global Quest, LLC appeals from the district court’s grant of 

summary judgment to defendants on all but one count of plaintiff’s amended 

complaint and to defendant Horizon Yachts, Inc. on its counterclaim for 

foreclosure of a promissory note. Plaintiff appeals from the district court’s entry of

partial final judgment pursuant to Rule 54(b) of the Federal Rules of Civil 

Procedure.

1

 We reverse the district court’s grant of summary judgment to 

defendants on Counts I, III, IV, VII, and VIII of plaintiff’s amended complaint and 

the grant of summary judgment to defendant Horizon Yachts, Inc. on its 

counterclaim.2

I. BACKGROUND

Plaintiff purchased a 105 foot luxury super-yacht, specifically a CC-105 

Horizon Explorer named “Starlight,” from defendant Horizon Yachts, Inc.

(“Seller”). The yacht was manufactured by defendant Horizon Yacht Co., Ltd. 

(“Horizon”) and its wholly-owned subsidiary Premier Yacht Co., Ltd. (“Premier”) 

 

1 “When an action presents more than one claim for relief . . . or when multiple parties 

are involved, the court may direct entry of a final judgment as to one or more, but fewer than all, 

claims or parties only if the court expressly determines that there is no just reason for delay.” 

FED. R. CIV. P. 54(b); see Lloyd Noland Found., Inc. v. Tenet Health Care Corp., 483 F.3d 773, 

778-80 (11th Cir. 2007).

2 Plaintiff does not challenge the district court’s entry of summary judgment on Counts II, 

V, VI, IX, and X of the amended complaint. Counts VIII, IX, and X incorrectly are labeled in 

the amended complaint as IX, X, and XI respectively.

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in Taiwan. While both Horizon and Premier are Taiwanese companies, Seller is an 

independent U.S. Corporation based in Florida. It is undisputed, however, that the 

Seller is Horizon’s agent and appears to be owned, at least in part, by Horizon and 

Premier’s founder and CEO, John Lu. HORIZON YACHTS, INC., 

http://www.horizonyachtusa.com (last visited May 10, 2016) (“Horizon Yacht 

USA is the U.S. agent for Horizon Yachts”).

Plaintiff purchased the Starlight for $6,835,000 after negotiating and 

executing a Purchase and Sale Agreement with Seller, along with an Addendum 

executed shortly thereafter. That contract, as modified by the Addendum, contains 

a seemingly self-contradictory provision. The “as is” clause in the original 

Agreement, paragraph 10, states that “upon closing, buyer will have accepted the 

vessel in its ‘as is’ condition. Seller and the brokers have given no warranty, either 

express or implied, and make no representation as to the condition of the vessel, its 

fitness for any particular purpose or merchantability, all of which are disclaimed.” 

The Addendum, however, modifies this clause — providing that before the word 

“Seller,” “the following language is inserted: ‘Other than the limited express 

warranty attached here as Exhibit A.’” With this alteration, paragraph 10 thus 

reads: “Other than the limited express warranty attached here as Exhibit A, Seller 

and the broker have given no warranty, either express or implied . . . .” Thus, 

while the original Agreement purported to disclaim all warranties, express or 

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implied, the Addendum inserted an express limited warranty into the contract. But 

the Addendum also contains a further provision stating that “[t]he terms of this 

Acceptance shall govern over any inconsistent terms in the Purchase Agreement 

which is hereby ratified and declared to be in full force and effect.” 

As stated in the Addendum, Plaintiff was given a limited express warranty, 

the terms of which were negotiated by the parties as part of the sale. Issued on 

Seller’s letterhead but purporting to be from “Horizon Group,” a trade name for 

Horizon’s companies, the limited warranty covers certain manufacturing and 

design defects for a period of one year from the contract date. It is limited, 

however, to “covered defects first discovered and reported to Horizon or the 

Original Selling Dealer.” The limited warranty also disclaims “all other express 

and implied warranties (except title),” and states that “[n]o employee, 

representative, authorized dealer or agent of Horizon other than an executive 

officer of Horizon is authorized to alter or modify any provision of the Limited 

Warranty or to make any guaranty, warranty or representation, express or implied, 

orally or in writing which is contrary to the foregoing.” The limited warranty also 

lists Premier and its contact details on the final page, without any explanation as to 

their relationship to the warranty. 

Plaintiff contends that defendants made numerous false representations 

regarding the yacht’s condition during the negotiation of the sale. Specifically, 

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plaintiff claims that the yacht was represented to be MCA LY2 compliant and built 

to DNV standards, both in statements made by Seller’s sales representative and on 

Horizon’s webpage advertising the Starlight.3

 Plaintiff claims that after it took 

possession it quickly discovered that the yacht was not MCA LY2 compliant nor 

was it built to DNV standards. The yacht had numerous problems that sharply 

limited the range of the vessel to short distances and also had electrical issues that 

rendered it unsafe. After defendants refused to repair or address the problems

under the warranty, plaintiff filed suit against the three defendants, bringing ten

claims under the amended complaint against each defendant: (1) fraud in the 

inducement; (2) revocation of acceptance under the Magnuson-Moss Warranty 

Act; (3) breach of the implied warranties of merchantability and usage of trade; 

(4) breach of the implied warranty of fitness for a particular purpose; (5) breach of 

a pre-purchase express oral warranty; (6) breach of a post-purchase express oral 

warranty; (7) breach of the implied warranty of workmanlike performance; 

(8) breach of the express written limited warranty; (9) rescission of the promissory 

note executed with the purchase; and (10) an injunction barring defendants from 

foreclosing on the promissory note or taking possession of the yacht for 

non-payment. Seller counterclaimed to foreclose on the promissory note.

 3 MCA is an acronym for the United Kingdom’s Maritime and Coastguard Agency. The 

agency publishes, among other codes, the Large Commercial Yacht Code, abbreviated “LY2”, 

which is a set of building standards for large yachts. DNV stands for “Det Norske Veritas” and 

it is the world’s largest classification society. The organization sets safety, reliability, and 

environmental standards for maritime vessels. 

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The district court entered summary judgment for defendants on all but two 

claims: the breach of express warranty claims against Horizon and Premier. The 

district court also entered summary judgment for Seller on its counterclaim to 

foreclose on the promissory note. Pursuant to Rule 54(b) of the Federal Rules of 

Civil Procedure, the district court certified the judgment as a partial final judgment 

for interlocutory review. Plaintiff appeals, challenging the district court’s entry of 

summary judgment as to Counts I, III, IV, VII, and VIII and the counterclaim.

II. DISCUSSION

We review a district court’s grant of summary judgment de novo. Stephens 

v. Mid-Continent Cas. Co., 749 F.3d 1318, 1321 (11th Cir. 2014) (citing Kragor v. 

Takeda Pharm. Am., Inc., 702 F.3d 1304, 1307 (11th Cir. 2012)). Summary 

judgment is appropriate when the evidence, viewed in the light most favorable to 

the nonmoving party, presents no genuine issue of material fact and compels 

judgment as a matter of law. Id.; see also FED R. CIV. P. 56(a); Celotex Corp. v. 

Catrett, 477 U.S. 317, 322-23 (1986).

Plaintiff challenges the entry of summary judgment as to: (1) the fraudulent 

inducement claims against all three defendants (Count I); (2) the breach of implied 

warranty claims against all three defendants (Counts III, IV, and VII); and (3) the 

breach of express warranty claim against Seller, Horizon Yachts, Inc. (Count VIII). 

Each is addressed in turn.

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A. Fraudulent Inducement: Count I

The district court granted summary judgment to all three defendants on 

plaintiff’s fraudulent inducement claim, relying on Florida precedent holding that a 

plaintiff “cannot recover for fraudulent oral representations which are covered in or 

contradicted by a later written agreement.” Sherwin-Williams Co. v. Auto Body 

Tech. Inc., No. 12-23362, 2014 WL 2177961, at *4 (S.D. Fla. May 26, 2014) 

(citing Giallo v. New Piper Aircraft, Inc., 855 So. 2d 1273, 1275 (Fla. Dist. Ct. 

App. 2003)). Relying on the “as is” and “entire agreement” clauses in the contract, 

the district court held that the claim is based on alleged pre-contractual 

misrepresentations that were expressly contradicted by the later written agreement, 

concluding that plaintiff could not have relied on the earlier statements as a matter 

of law due to the conflicting conditions in the agreement.

The district court expressly declined to follow Oceanic Villas, Inc. v. 

Godson, 4 So. 2d 689 (Fla. 1941), which, contrary to the district court’s reasoning, 

held that an “as is” clause does not bar a plaintiff from bringing a fraud claim. 

Specifically, the Florida Supreme Court in Oceanic Villas held that where an 

agreement is procured by fraud or misrepresentation “every part of the [] contract”

is vitiated because “[i]t is well settled that a party can not contract against liability 

for his own fraud.” Id. at 690. The district court declined to follow Oceanic Villas

because, in its view, (1) it “is distinguishable because it did not involve a warranty 

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disclaimer or address recent Florida law, stating that a party cannot recover in 

fraud for misrepresentations covered or expressly contradicted in a later written 

agreement;” (2) it was decided before the enactment of Florida’s Uniform 

Commercial Code in 1965, which permits “as is” clauses and the exclusion of 

warranties; and (3) the Florida Supreme Court’s holdings are “fact intensive and 

depend on a review of the conditions of the contract as a whole, not just one 

clause.” 

Plaintiff argues that the district court erred by refusing to follow Oceanic 

Villas and granting summary judgment to defendants on the fraudulent inducement 

claim. We agree. 

“As a federal court sitting in diversity jurisdiction, we apply the substantive 

law of the forum state, in this case Florida, alongside federal procedural law.” 

Horowitch v. Diamond Aircraft Indus., Inc., 645 F.3d 1254, 1257 (11th Cir. 2011) 

(citing Erie R.R. Co. v. Tompkins, 304 U.S. 64, 58 (1938)). The Florida Supreme 

Court “does not intentionally overrule itself sub silentio.” Puryear v. Florida, 810 

So. 2d 901, 905 (Fla. 2002). “Where a court encounters an express holding from 

[the Florida Supreme] Court on a specific issue . . . , the court is to apply [the]

express holding in the former decision until such time as [the Supreme] Court 

recedes from the express holding.” Id.; see also Hoffman v. Jones, 280 So. 2d 431, 

434 (Fla. 1973). The Florida Supreme Court has not overruled Oceanic Villas, 

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explicitly or implicitly. In fact, Florida’s intermediate courts of appeal have 

continued to apply Oceanic Villas as recently as 2011. See, e.g., Lower Fees, Inc. 

v. Bankrate, Inc., 74 So. 3d 517, 519 (Fla. Dist. Ct. App. 2011); D & M Jupiter, 

Inc. v. Friedopfer, 853 So. 2d 485, 488-89 (Fla. Dist. Ct. App. 2003); Burton v. 

Linotype Co., 556 So. 2d 1126, 1127 (Fla. Dist. Ct. App. 1990); see also Carolina 

Acquisition, LLC v. Double Billed, LLC, No. 07-61738-CIV, 2009 WL 3190807, 

at *2 (S.D. Fla. 2009). Oceanic Villas therefore remains binding precedent on the 

law of fraudulent inducement in Florida, a fact unchanged by the more recent case 

law cited by the district court. And neither the district court nor this Court is “at 

liberty to disregard binding case law that is so closely on point,” and has not been 

directly overruled by the Florida Supreme Court. United States v. Clarke, 780 F.3d 

1131, 1133 (11th Cir. 2015) (second alteration in original) (quoting United States 

v. Chubbuck, 252 F.3d 1300, 1305 n.7 (11th Cir. 2001)).

Oceanic Villas also is not distinguishable from this case. Nor was its 

holding “fact intensive” such that its reasoning must be limited to the precise 

contract provisions it considered. Oceanic Villas held that a contract provision, 

including an “as is” clause, cannot preclude a fraud claim, unless the contract 

expressly states that it is incontestable on the ground of fraud. 4 So. 2d at 690-91 

(“We recognize the rule to be that fraud in the procurement of a contract is ground 

for rescission and cancellation of any contract unless for consideration or 

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expediency the parties agree that the contract may not be cancelled or rescinded for 

such cause.”). This rule is directly contrary to the district court’s holding that 

plaintiff’s claim is barred by virtue of the provisions of the contract. That the 

contract at issue in Oceanic Villas did not contain a warranty disclaimer is a 

distinction without a difference. Nothing in Oceanic Villas suggests that the result 

would have been different with a warranty disclaimer, or any other contract 

provision save a specific disclaimer of liability for fraud. Absent such a 

disclaimer, no matter the context, “a party can not contract against liability for [its] 

own fraud.” 4 So. 2d at 690.

The district court appears to have confused the threshold question of whether 

a claim is barred as a matter of law with the later question of whether the evidence 

is sufficient to survive summary judgment. The Sixth Circuit, applying Oceanic 

Villas in a diversity case, recently explained this distinction as follows:

Attempting to overcome this conclusion [that its alleged 

reliance on statements was unreasonable], [Appellant] 

relies on two Florida cases — Oceanic Villas, Inc. v. 

Godson, 4 So. 2d 689, 690 (Fla. 1941); Allen v. Stephan 

Co., 784 So. 2d 456 (Fla. Dist. Ct. App. 2000) — to show 

that a fraud claim can survive an integrated lease. But 

simply because [Appellant] is not prohibited from 

bringing a fraud claim does not mean [Appellant] can 

prove the elements of its fraud claim. Neither case 

suggests otherwise. In Oceanic Villas, the Florida 

Supreme Court held that an integration clause similar to 

the ones at issue here did not “estop[]” the lessee from 

alleging fraud or “make the contract incontestable 

because of fraud.” Oceanic Villas, Inc v. Godson, 4 So. 

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2d at 690-91. But the court went on to call an integration 

clause “evidence[]” that “neither party has relied upon 

the representation of the other party made prior to the 

execution of the contract.” Id. at 691; accord Cassara v. 

Bowman, 186 So. 514, 514 (1939). Here, we have that 

precise “evidence” and [Appellant]s’ actual knowledge 

that Best Buy Mobile would enter the relevant malls or 

already had done so before any final leases were signed 

[directly contradicting the alleged fraudulent 

misrepresentations]. . . . But again, no one here thinks 

[Appellant]’s claim is barred; the claim just lacks merit.”

Beeper Vibes, Inc v. Simon Property Grp., Inc., 600 Fed. App’x 314, 318-19 (6th 

Cir. Dec. 12, 2014). The “as is” clause and the rest of the Purchase Agreement in 

this case may constitute evidence against plaintiff’s fraud allegations, but 

plaintiff’s claims are not precluded as a matter of law.

The confusion over this distinction appears to have led the district court to 

conclude that two Florida cases, Faulk v. Weller K-F Cars, Inc., 70 So. 2d 578 

(Fla. 1954), and Lou Bachrodt Chevrolet, Inc. v. Savage, 570 So. 2d 306 (Fla. Dist. 

Ct. App. 1990), are irreconcilable and that Faulk suggests an implicit rejection of 

Oceanic Villas. In Faulk, the Florida Supreme Court held that a written guarantee

with a clear disclaimer of warranties and representations “negatives the idea of 

fraudulent misrepresentations” and that plaintiff’s “allegations and the proof with

reference to fraudulent misrepresentations were wholly insufficient.” 70 So. 2d at 

579. Faulk thus is an illustration of the above distinction — the court did not 

address whether the claim was barred as a matter of law; the claim just lacked 

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merit because the allegations and evidence “were wholly insufficient” and the clear 

contract provisions weighed in the other direction. Similarly, in Lou, the Florida 

District Court of Appeal did not consider whether a claim was barred as a matter of 

law by a contract provision, but instead found sufficient evidence to affirm a jury 

verdict because the plaintiff had “produced evidence as to all the elements of fraud 

in the inducement” despite the existence of an “as is” provision in the contract. 

570 So. 2d at 308. Neither Faulk nor Lou applied the rule from Oceanic Villas,

and they are irrelevant for our purposes here.

Lastly, the fact that Oceanic Villas was decided before Florida’s enactment 

of the Uniform Commercial Code also is of no moment because, although the UCC 

permits “as is” clauses and warranty disclaimers, it is silent as to the impact, if any, 

that such contract provisions have on fraud claims. See Hill v. Florida, 711 So. 2d 

1221, 1224 (Fla. Dist. Ct. App. 1998) (“In the absence of clear constitutional or 

statutory authority reflecting a change in established law, we do not possess the 

authority to disregard controlling precedent of the [Florida Supreme Court].”); see

also Hoffman v. Jones, 280 So. 2d at 434. There is no indication that the Florida 

legislature intended to overrule Oceanic Villas by passing the UCC. See also

Tinker v. De Maria Porsche Audi, Inc., 459 So. 2d 487, 491 (Fla. Dist. Ct. App. 

1984) (Florida’s UCC “states that the pre-Code law with regard to fraud 

supplements the U.C.C. and is not displaced by the Code, unless a particular 

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provision specifically provides for such displacement.”) (citing Fla. Stat. § 

671.103).

Defendants suggest two alternatives bases on which we might affirm the 

district court. First, defendants maintain that they are entitled to summary 

judgment because there are no genuine issues of material fact. Specifically, 

defendants argue that plaintiff has failed to present “any record evidence of the 

required elements of knowledge and intentional deceit.” In fraud cases, however, 

summary judgment “is rarely proper as the issue so frequently turns on the axis of 

the circumstances surrounding the complete transaction, including circumstantial 

evidence of intent and knowledge.” Coastal Investment Properties, Ltd. v. Weber 

Holdings, LLC, 930 So. 2d 833, 834 (Fla. Dist. Ct. App. 2006) (quoting Cohen v. 

Kravit Estate Buyers, Inc., 843 So. 2d 989, 991 (Fla. Dist. Ct. App. 2003)); see

also Burton, 556 So. 2d at 1129-30 (“Fraud is ordinarily inappropriate for 

summary disposition; only after a full explanation of the facts and circumstances 

can the occurrence of fraud be determined.”). To establish a claim of fraud in the 

inducement under Florida law, a plaintiff must establish that: (1) the representor 

made a false statement concerning a material fact; (2) the representor knew or 

should have known that the representation was false; (3) the representor intended 

to induce another party to act in reliance on the false statement; and (4) the party 

acted in justifiable reliance on the representation and was injured as a result. 

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Butler v. Yusem, 44 So. 3d 102, 105 (Fla. 2010) (citing Johnson v. Davis, 480 So. 

2d 625, 627 (Fla. 1985)). Despite defendants’ protestations that there is no direct 

evidence proving intent and knowledge, suffice it to say that the elements of fraud 

— particularly including intent and knowledge — may be, and often are, proven by 

circumstantial evidence. See, e.g., Bacon & Bacon Mfg. Co. Inc. v. Bonsey 

Partners, 62 So. 3d 1285 (Fla Dist. Ct. App. 2011); Century Properties, Inc. v. 

Machtinger, 448 So. 2d 570 (Fla. Dist. Ct. App. 1984). Viewed in the light most 

favorable to plaintiff, there is sufficient evidence on the elements of fraudulent 

inducement for this case to proceed to trial. 

Internal emails of the defendants indicate knowledge of the yacht’s very

poor condition, and plaintiff’s representative, Paul Queyrel, and its brokers 

testified in depositions that defendants and their representatives made 

representations to them during the sales pitch about the condition of the yacht and 

specifically that it met international standards, which allegedly proved false after 

delivery. In addition, plaintiff alleges that defendants advertised the yacht, both on 

the internet and in physical handouts, as being MCA LY2 compliant and built to 

DNV standards. Plaintiff’s representative and its brokers also testified that they 

discussed these two standards at length with defendants and relied on defendants’ 

written and oral representations, and that defendants were aware that these 

standards were “the selling point” of the sale. Plaintiff claims that these repeated 

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representations induced it to purchase the yacht. Plaintiff’s representative and its 

brokers further testified that the yacht was represented to be new, not a used 

“dealer-demo” as defendants claim, and that when certain problems were 

discovered prior to the sale, defendants “represented that Horizon would ‘take care 

of’ and fix th[e] problem.”

The CEO of the Seller, Roger Sowerbutts, denied under oath ever making 

representations that the yacht was MCA LY2 compliant, denied that defendants 

were aware of manufacturing defects and damage to the yacht, and claimed that 

defendants believed the yacht to have been built to DNV standards. Mr. 

Sowerbutts conceded, however, that defendants’ website incorrectly described the 

yacht as MCA LY2 compliant, despite the fact that the yacht “never was inspected 

by MCA.” There therefore are genuine issues of material fact and evidence

sufficient to survive summary judgment as to all four elements of the claim of 

fraudulent inducement.

Second, defendants argue that the economic loss rule bars plaintiff’s claim 

for fraudulent inducement. The “economic loss rule is a judicially created doctrine 

that sets forth the circumstances under which a tort action is prohibited if the only 

damages suffered are economic losses.” Tiara Condominium Assoc., Inc. v. Marsh 

& McLennan Companies, 110 So. 3d 399, 401 (Fla. 2013). The rule was designed 

to prevent the application of tort remedies to traditional contract law damages. Id. 

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The economic loss rule “has its roots in the products liability arena,” id., and the 

Florida Supreme Court recently clarified in Tiara that under Florida law “the 

economic loss rule applies only in the products liability context.” Id. at 407. The 

Florida Supreme Court thus “recede[d] from [its] prior rulings to the extent that 

they [] applied the economic loss rule to cases other than products liability.” Id.; 

see also Alpha Data Corp. v. HX5, L.L.C., 139 So. 3d 907, 910 (Fla. Dist. Ct. App. 

2013) (citing Tiara and summarily reversing a district court’s decision that the 

economic loss rule barred a fraudulent inducement claim). 

Although a fraudulent inducement claim still must be independent of a 

breach of contract claim, that minimal requirement is readily met here — the fraud 

allegations are separate and distinct from defendants’ performance under the 

contract. The fraud allegations concern representations about the yacht’s condition 

and certain international building standards. The contract contains no statements 

about either the international standards or the yacht’s condition. Such claims

therefore could not form the basis of a breach of contract claim.4

B. Breach of Implied Warranties: Counts III, IV, and VII

The district court granted summary judgment to all three defendants —

Horizon Yachts, Inc., Horizon Yacht Co., Ltd., and Premier Yacht Co., Ltd. — on 

 4 Because judgment in favor of plaintiff on the fraudulent inducement claim would 

“vitiate” the contract, we also reverse the grant of summary judgment to the Seller on its 

counterclaim to foreclose on the promissory note.

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plaintiff’s breach of implied warranty claims due to the contract’s express 

disclaimer of all implied warranties. Plaintiff argues that Section 2308(a) of the 

Magnuson-Moss Warranty Act (“MMWA”), 15 U.S.C. § 2308(a), prohibits a seller 

from disclaiming implied warranties if an express warranty, including a limited 

warranty, is given. The district court rejected this argument because “limited 

warranties are not governed by MMWA.” Not so.

The Magnuson-Moss Warranty Act does apply to limited warranties. As 

relevant, Section 2308(a) provides that:

(a) No supplier may disclaim or modify (except as 

provided in subsection (b) of this section) any implied 

warranty to a consumer with respect to such consumer 

product if . . . such supplier makes any written warranty 

to the consumer with respect to such Consumer 

Product . . . .”

15 U.S.C. § 2308(a). As Section 2303 of the Act makes clear, the term “written 

warranty” encompasses both “full” warranties, written warranties that meet “the 

Federal minimum standards for warranty set forth in section 2304 of [the Act],” 

and “limited” warranties, written warranties that do not meet the Federal minimum 

standards. 15 U.S.C. § 2303(a). By its plain language, Section 2308 prohibits 

sellers from disclaiming implied warranties when either a full or a limited warranty 

is provided by the seller. Accord Abraham v. Volkswagen of America, Inc., 795 

F.2d 238, 248 (2d Cir. 1986) (“Implied warranties . . . may not be disclaimed if a 

written warranty, “full” or “limited,” is given, 15 U.S.C. § 2308(a).”); Boelens v. 

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Redman Homes, Inc., 748 F.2d 1058, 1063 (5th Cir. 1984) (“Although ‘limited’ 

warranties are not subject to [the standards of Section 2304], the Act does provide 

that the terms of a limited warranty may limit the duration of implied warranties 

only to the duration of the written warranty.”) (quoting 15 U.S.C. § 2308). If a 

jury concludes that one or all of the defendants issued or agreed to be bound by the 

limited written warranty, the disclaimer of implied warranties therefore would be 

ineffective to bar plaintiff’s claim.5

Defendants argue in the alternative that Horizon and Premier are entitled to 

summary judgment because they are not in privity of contract with plaintiff, that 

only the Seller — Horizon Yachts, Inc. — is. See Kramer v. Piper Aircraft Corp., 

520 So. 2d 37, 38 (Fla. 1988) (Florida law requires privity of contract for a breach 

of implied warranty claim). Because, as we discuss infra at 21-25, there is a 

genuine issue of material fact regarding who issued the limited express warranty 

(Horizon, Premier, Horizon Yachts, or some combination thereof), there also is a 

genuine issue of fact regarding privity of contract. Florida courts have found the

 5 The district court’s reliance on Bailey v. Monaco Coach Co., 350 F. Supp. 2d 1036, 

1042 (N.D. Ga. 2004), to reach the opposite conclusion was misplaced. In Bailey, the Northern 

District of Georgia correctly noted that the MMWA distinguishes between full and limited 

warranties and that “[o]nly full warranties are required to meet the minimum standards set forth 

in 15 U.S.C. § 2304.” 250 F. Supp. 2d at 1042. The court then concluded that “because the law 

relating to limited warranties is not expressly modified, limited warranties . . . are not governed 

by Magnuson-Moss but by the Uniform Commercial Code” and went on to discuss relevant state 

law warranty standards. Id. This overly broad statement is correct as to Section 2304 — the 

minimum standards of Section 2304, by definition, apply only to full warranties — but incorrect 

as to Section 2308, which, as discussed above, does apply to limited warranties.

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privity requirement to be satisfied when a manufacturer directly provides a 

warranty to, or otherwise has direct contact with, a buyer who purchases from a 

third party. See ISK Biotech Corp. v. Douberly, 640 So. 2d 85 (Fla. Dist. Ct. App. 

1994) (finding privity where manufacturer’s representative told third-party seller 

that seller could assure plaintiff that product would not destroy plaintiff’s crop); 

Cedars of Lebanon Hosp. Corp. v. European X-Ray Distribs. of America, Inc., 444 

So. 2d 1068, 1072 n.4 (Fla. Dist. Ct. App. 1984) (finding privity where 

manufacturer’s representative made express warranty through direct contacts with 

the purchaser who bought product from third-party distributor). 

Here, a jury could find that Horizon and Premier directly issued to plaintiff a 

unique limited express warranty that was provided and specifically negotiated as 

part of the purchase of the yacht they manufactured. See Cedars of Lebanon, 444 

So. 2d at 1072 (“It seems fundamentally unfair, and anomalous in the extreme, to 

allow the manufacturer to hide behind the doctrine of privity when the product, 

which it induced the purchaser to buy, turns out to be worthless.”). There also is 

evidence that the founder and CEO of Horizon and Premier was directly involved 

in the negotiation of the purchase and limited warranty, it is undisputed that the 

Seller, Horizon Yachts, is an agent of Horizon. HORIZON YACHTS, INC., 

http://www.horizonyachtusa.com (last visited May 2, 2016) (“Horizon Yacht USA 

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is the U.S. agent for Horizon Yachts”).

6 Plaintiff therefore might well be able at 

trial to establish privity through the agency relationship. See Ocana v. Ford Motor 

Co., 992 So. 2d 319, 324-25 (Fla. Dist. Ct. App. 2008) (an agency relationship can 

establish the requisite privity).

C. Breach of Express Limited Warranty: Count VIII

The district court granted summary judgment to the Seller, Horizon Yachts, 

Inc., on plaintiff’s breach of express warranty claim, but not to Horizon Yacht Co., 

Ltd. or to Premier Yacht Co., Ltd. It held that the Seller did not issue or provide an 

express limited warranty to plaintiff. The district court concluded that the 

Addendum did not incorporate the limited express warranty into the contract 

because: (1) “it would be unreasonable to interpret paragraph ten of the 

agreement, indicating both that the [Seller] makes no warranties and sells the yacht 

“AS IS,” and to thereafter include a limited warranty by the [Seller];” and (2) the 

Purchase Agreement, Addendum, and limited warranty “indicate[] that [Horizon 

Yachts] is not part of “Horizon” or “Horizon Group,” the party that issued the 

limited warranty.” 

We disagree that it would be unreasonable to interpret the Purchase 

Agreement, as amended by the Addendum, to include both the limited warranty 

and an “as is” clause. The amended “as is” clause specifically demarcates the 

 6 Horizon Yachts, Inc. also uses the name “Horizon Yacht USA.” 

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limited warranty as an exception to the clause. And the Addendum states that 

“[t]he Terms of this Acceptance shall govern over any inconsistent terms in the 

Purchase Agreement.” Thus, to the extent that the original “as is” clause conflicts 

with the Addendum or the added limited warranty, the Addendum and limited 

warranty would govern — assuming, of course, that they are a part of the contract

— a question to which we now turn.

A collateral document, such as the limited warranty, is deemed to be 

incorporated by reference into a contract if the contract “(1) specifically provide[s] 

that it is subject to the incorporated [collateral] document and (2) the collateral 

document to be incorporated must be sufficiently described or referred to in the 

incorporating agreement so that the intent of the parties may be ascertained.” BGT 

Grp., Inc. v. Tradewinds Engine Servs., LLC, 62 So. 3d 1192, 1194 (Fla. Dist. Ct. 

App. 2011) (quoting Kantner v. Boutin, 624 So. 2d 779, 781 (Fla. Dist. Ct. App. 

1993)). The first requirement mandates that “there must be some expression in the 

incorporating document . . . of an intention to be bound by the collateral 

document.” Kantner, 624 So. 2d at 781. As to the second requirement, “[i]t is a 

generally accepted rule of contract law that, where a writing expressly refers to and 

sufficiently describes another document, that other document, or so much of it as is 

referred to, is to be interpreted as part of the writing.” Id. (quoting OBS Co. v. 

Pace Constr. Corp., 558 So. 2d 404, 406 (Fla. 1990)).

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Viewing the evidence in the light most favorable to the plaintiff, as we must 

on summary judgment, we conclude — while it is a very close question — that 

there are genuine issues of material fact as to whether the limited warranty was 

incorporated into the contract or whether the Seller, Horizon Yachts, otherwise 

agreed to be bound by the warranty. Admittedly, the Purchase Agreement and the 

warranty appear to differentiate between “Buyer” and “Seller [Horizon Yachts]” 

on the one hand, and the “Horizon Group,” on the other, an indication that the 

Seller, Horizon Yachts, is not a part of the Horizon Group, as the district court 

found. And paragraph 13 of the warranty suggests that it was not the Seller who 

issued the warranty and that the Seller did not agree to be bound by it. But this 

evidence, while strong, conflicts with three pieces of evidence that in our view 

raise genuine issues of material fact for a jury to resolve.

First, the Purchase Agreement, as amended by the Addendum, states that 

“[o]ther than the limited express warranty attached here as Exhibit A, Seller and 

the brokers have given no warranty, either express or implied . . . .” This 

reasonably could be read to mean that the Seller, Horizon Yachts, itself, at least in 

part, issued the limited express warranty. The Purchase Agreement, together with 

the Addendum, specifically lists the limited warranty and states that it is attached 

“as Exhibit A.” Moreover, the limited warranty was listed in the Closing Index, 

along with the Purchase Agreement and the Addendum, as a part of the parties’ 

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agreement. Second, the limited warranty was issued on the Seller’s letterhead, and 

it was negotiated alongside the Purchase Agreement and provided to plaintiff by 

the Seller prior to the execution of the Purchase Agreement. Finally, a jury also 

could reasonably conclude that the Seller is part of the “Horizon Group” 

mentioned in the limited warranty — its website states that it is the U.S. agent of 

Horizon and the Seller appears to be owned, at least in part, by Horizon’s founder 

and CEO. 

The Purchase Agreement as a whole thus contains conflicting provisions as 

to the Seller’s relationship with the warranty, and it is bolstered by extrinsic 

evidence of the Seller’s relationship with the other Horizon entities. While there is 

certainly strong evidence against finding that the Seller, Horizon Yachts, Inc., 

agreed to be bound by the limited warranty, we believe that there is also sufficient 

evidence in the record to create a genuine issue of material fact entitling the jury

rather than the court to decide that question.

There is one final point to address with respect to the express limited 

warranty. As noted, the Purchase Agreement states that it is “attached here as 

Exhibit A,” but it was not actually physically attached as an exhibit. Nevertheless, 

the limited warranty was negotiated by the parties in conjunction with the Purchase 

Agreement, provided to plaintiff well before the agreement was executed, and was 

listed in the Closing Index. See Avatar Properties, Inc. v. Greetham, 27 So. 3d 

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764, 766 (Fla. Dist. Ct. App. 2010) (where a home warranty was not attached to 

any agreement, language that “the warranty was available for examination at [the 

seller’s] offices and that upon request the warranty would be attached as an exhibit 

to the purchase and sale agreement” was sufficient to satisfy the second 

requirement for incorporation by reference). Reading the documents together, a 

jury could conclude that the parties intended for the Purchase Agreement, 

Addendum, and limited warranty all to be part of the same contract. See Phoenix 

Motor Co. v. Desert Diamond Players Club, Inc., 144 So. 3d 694, 697-98 (Fla. 

Dist. Ct. App. 2014) (holding that documents “executed as part of the same 

transaction” are incorporated when “they indicate the parties’ intent for the 

[incorporating document] and the [collateral document] to be part of the same 

contract”); see also Collins v. Citrus Nat’l Bank, 641 So. 2d 458, 459 (Fla. Dist. 

Ct. App. 1994) (“Where two or more documents are executed by the same parties, 

at or near the same time, in the course of the same transaction, and concern the 

same subject matter, they will be read and construed together.”).

III. CONCLUSION

For the foregoing reasons, we vacate the district court’s grant of summary 

judgment, as to Counts I, III, IV, VII, and VIII and remand for trial, but affirm the 

grant of summary judgment as to the remaining claims. We also reverse the 

district court’s grant of summary judgment on defendants’ counterclaim.

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AFFIRMED IN PART, VACATED IN PART, AND REMANDED.

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