Opinion ID: 1870460
Heading Depth: 1
Heading Rank: 2

Heading: The Implied Warranty of Fitness Claim

Text: Pappas contended at trial that the same course of conduct by Ricwil and Dowdy that allegedly breached their contract with Pappas also breached an implied warranty of fitness for a particular purpose. That is, Pappas contended that Ricwil and Dowdy knew or had reason to know that Pappas intended to use the Copper-Gard system pipe to supply heated water to various buildings at the Fort McClellan project. Pappas has failed to address the issue of an implied warranty of fitness for a particular purpose. Ricwil, however, argues that it excluded any warranty of fitness for a particular purpose and that it did so in conspicuous, written terms. We are convinced that Ricwil failed to comply with the requirements of § 7-2-316(2), and, thus, failed to exclude the warranty of fitness for a particular purpose. On the face sheet of the Copper-Gard installation manual, admittedly received and read by Sonny Marshton, a representative of Pappas, was the following exclusion of warranty: This express warranty is in lieu of and excludes all other warranties expressed or implied, including, without limitation, merchantability or fitness for a particular purpose. Section 7-2-316(2) states, in pertinent part, [T]o exclude or modify any implied warranty of fitness [for a particular purpose] the exclusion must be by a writing and conspicuous.  (Emphasis supplied.) The exclusion here is clearly in writing. Section 7-1-201(10) defines conspicuous as: A term or clause is conspicuous when it is so written that a reasonable person against whom it is to operate ought to have noticed it. A printed heading in capitals (as: NONNEGOTIABLE BILL OF LADING) is conspicuous. Language in the body of a form is `conspicuous' if it is in larger or other contrasting type or color. But in a telegram any stated term is `conspicuous.' Whether a term or clause is `conspicuous' or not is for decision by the court.  (Emphasis supplied). Here, the exclusion is on the front page of the installation manual in a section labelled Warranty. Although the label Warranty is conspicuous, the actual exclusion is merely in normal type. The exclusion is not in larger or other contrasting type or color, and it is not so written that a reasonable person against whom it is to operate ought to have noticed it. The exclusion here, then, was clearly inconspicuous, and thus, did not work to exclude any warranty of fitness for a particular purpose. In addition to the exclusion, both Ricwil and Dowdy argue that Pappas did not actually rely on their skill or judgment in selecting the Copper-Gard system, but rather relied solely on the project engineer's skill and judgment. While we agree that there is evidence to this effect, we also find at least a scintilla of evidence to support a finding of reliance. Specifically, Sonny Marshton testified: Q: Okay, Mr. Marshton. If you would, look at that [plaintiff's exhibit 3] and tell me what that is. A: This is a submittal on the job. Q: What is a submittal? A: This is asubmittal is about the pipe, tells you what, how it's made, the jacket size, and all that. It's more or less of a brochure to tell you what they're furnishing. Q: All right. And Dowdy & Associates furnished that to you; Mr. Moore [of Dowdy & Associates] furnished it to you? A: Yes, sir, I think Mr. Moore, yes, sir. Q: Now, when you were discussing this with Mr. Moore, did you request any particular brand of piping or any particular kind of piping? A: No, sir, just what the specifications called for.  R. at 27-28. (Emphasis supplied.) The above testimony constitutes at least a scintilla of evidence that Pappas relied upon Dowdy's skill and judgment (and that of Ricwil as Dowdy's principal) in selecting proper pipe for the project. Thus, the trial court did not err in submitting to the jury the claim alleging a breach of an implied warranty of fitness for a particular purpose, because the warranty was not excluded by a conspicuous writing, and because Pappas submitted sufficient evidence of reliance.