Opinion ID: 692023
Heading Depth: 1
Heading Rank: 1

Heading: introduction

Text: 1 In this contract action, Shur-Value Stamps, Inc. (Shur-Value) brought suit against the Phillips Petroleum Company (Phillips), alleging causes of action for breach of warranty, breach of implied warranty of merchantability and breach of implied warranty of fitness for a particular purpose. This suit arose out of Shur-Value's purchase in the fall of 1991 of Phillips' K-Resin for use in the production of clear water bottles. Shur-Value contends that, notwithstanding Phillips' representations to the contrary, the K-Resin created harsh odors and tastes making the bottled water unmarketable. Shur-Value filed its complaint on July 19, 1993, almost a year and a half after the alleged breach. The matter was set for trial on May 12, 1994. On May 11, 1994, however, the district court 1 initiated two telephone conferences between the court and counsel for both Shur-Value and Phillips. Based upon the matters discussed in the telephone conversation, the court concluded that as a matter of law Shur-Value's claim was time-barred, pursuant to the contract terms. The court then entered its order of dismissal. 2 Shur-Value challenges the district court's dismissal on three grounds. First, Shur-Value contends that the district court did not provide Shur-Value with sufficient notice by which it could contest the court's sua sponte summary dismissal of its claims. Second, even assuming the district court had complied with Eighth Circuit procedure in rendering its decision, Shur-Value had presented a genuine issue of material fact as to whether it had actually received Phillips' purchase order acknowledgment (POA) form and thereby accepted the POA's one-year statute of limitations restriction. Finally, Shur-Value claims that even if the district court properly determined as a matter of law that Shur-Value had received the POA, the district court erred in deciding that as a matter of law the one-year remedy provision had not materially altered the contract, pursuant to Sec. 2.207 of the Texas Business and Commerce Code. For the following reasons, we affirm.