Court Opinion

ID: 9479717
Source: CourtListenerOpinion
Date Created: 2023-08-05 07:27:05.332795+00
Date Added: 2024-06-11T17:47:13.906772
License: Public Domain

CANBY, Circuit Judge,
concurring in part and dissenting in part:
I concur in much of Judge Stephens’ well-crafted opinion. Although the question is a close one for me, I agree that we must affirm the district court’s ruling that the written contracts were not integrated. My view is largely based on the standard of review; I cannot say that the district court clearly erred in finding that the parties did not intend the written contracts to be a complete and final expression of their agreement. For the reasons set forth by Judge Stephens, Sierra Diesel may therefore recover on its claim of express warranty.
I also agree that the lease agreements entered by Sierra Diesel were actually financing agreements, and did not abrogate the contracts between Sierra Diesel and Burroughs.
My disagreement with the majority concerns the question whether the disclaimers of implied warranties were conspicuous. On that issue, our standard of review is de novo. See Delhomme Industries Inc. v. Houston Beechcraft, 669 F.2d 1049, 1061 (5th Cir.1982). My own view of the contracts leads me to conclude that the clauses are conspicuous within the meaning of Nev.Rev.Stat. § 104.1201(10).
The software agreement is the clearest. In a separate paragraph, in large, capital bold type immediately above the signature line on the face page, there appears the following sentence: “THE TERMS AND CONDITIONS, INCLUDING THE WARRANTY AND LIMITATION OF LIABILITY, ON THE REVERSE SIDE ARE PART OF THIS AGREEMENT.” That language is possibly the most conspicuous single item in the entire agreement. On the reverse side, under the section headed “WARRANTY” appears the disclaimer of implied warranties, in a separate paragraph, all in capital letters. These provisions, in my view, would call a reasonable buyer’s attention to the disclaimer. See Hunter v. Texas Instruments, Inc., 798 F.2d 299, 303 (8th Cir.1986).
The disclaimer in the hardware agreement presents a closer question. There is no reference to warranties or limitation of liability on the front of the contract, but the last line, in capitals, before the signature states that the customer has agreed to all terms and conditions including those on the reverse side. The reverse side contains 15 numbered sections, in print of small size and low contrast that discourages reading. Nevertheless, in the middle of the left column, in much larger print and all capitals, there appears the separate paragraph stating: “EXCEPT AS SPECIFICALLY PROVIDED IN THIS AGREEMENT, THERE ARE NO OTHER WARRANTIES EXPRESS OR IMPLIED INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY OF FITNESS FOR A PARTICULAR PURPOSE.” By location and prominence, this clause is probably the most conspicuous one on the page. I conclude that it would notify the reasonable buyer. Such a provision was described as “conspicuous” in Earman Oil Co. Inc. v. Burroughs Corp., 625 F.2d 1291, 1298 (5th Cir.1980), and Badger Bearing Co. v. Burroughs Corp., 444 F.Supp. 919, 922 (E.D.Wis.1977), aff'd, 588 F.2d 838 (7th Cir.1978), although the question of conspicuousness was not actively contested in those cases. The fact that the disclaimer was on the back side of the contract ought not to render it ineffective, so long as the language on the front side prominently referred to the terms and conditions on the back. See Jaskey Finance and Leasing v. Display Data Corp., 564 F.Supp. 160, 165 (E.D.Pa.1983).
Because I conclude that the disclaimers of implied warranties were conspicuous, I would reverse that part of the judgment that separately awards damages for breach of implied warranty. See Bill Stremmel Motors, Inc. v. IDS Leasing Corp., 89 Nev. *118414, 514 P.2d 654 (1978); Sierra Creek Ranch v. J.I. Case, 97 Nev. 457, 634 P.2d 458 (1981). In all other respects, I join the majority in affirming.