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Holbrook11/9/2000
Holbrook, Inc. (Holbrook) appeals the summary judgment dismissal of its product liability lawsuit to recover on warranties for a defective log loader from Link-Belt Construction Equipment Company and Isuzu Diesel of North America, Inc. Holbrook argues the trial court erred in ruling that statutes of limitations barred its claims. We affirm, holding that:
(1) Holbrook's warranty claims do not fall within the 'future performance' exception of the statute of limitations; (2) the warranty statute of limitations was not tolled by Link-Belt's and Isuzu's repair efforts; and (3) Holbrook's product liability claim was also time- barred because Holbrook knew of the defect more than three years before filing suit.
FACTS
Holbrook is a logging company. In August 1988, Holbrook entered into a 'Flex Lease' agreement with Howard-Cooper Corporation, a Link-Belt distributor, for the purchase of a Link-Belt hydraulic log loader. The log loader was constructed from a converted excavator and powered by an Isuzu engine. Holbrook's president, Jerry Holbrook, negotiated the agreement with Howard-Cooper sales manager Cecil White. Under the 'Flex Lease' agreement, Holbrook could rent the log loader for six months and then either purchase or return it. The, $266,574 purchase price included the cost of extended Link-Belt and Isuzu warranties.
Link-Bels issued its standard warranty when it delivered the log loader on September 9, 1988. The warranty provided:
{Link-Belt} warrants all products manufactured by it to be free from defects in material and manufacture at the time of shipment for twelve (12) months from date of shipment or 1500 hours of operation, whichever shall occur first. {Link-Belt} will furnish without charge, f.o.b. its factory, replacements for such {of} the parts as {Link-Belt} finds to have been defective at the time of shipment, or at {Link-Belt's} option, will make or authorize repairs to such parts . . . . (Emphasis added.)
Link-Belt's extended warranty for powertrain components covered 'a time period of thirty{-}six (36) months after initial delivery of the machine or 5000 operating hours, whichever occur{red} first.'
Isuzu's standard engine warranty covered parts and labor for 12 months or 1,800 hours of operation under the following conditions: {Isuzu's} products and parts, when shipped, will meet all applicable specifications and will be free from defects in material and workmanship. .
All claims for defective products or parts under this warranty must be made in writing immediately upon discovery and, in any event, but not to exceed twelve (12) months after delivery . . . .
The repair of defective engine parts qualifying under this warranty will be performed by an authorized service outlet, using new parts, within a reasonable time following the delivery of the engine to the service outlet's place of business. (Emphasis added.)
The extended Isuzu warranty, labeled an 'Extended Service Plan,' required Isuzu to 'pay 100% of parts and labor to repair or replace' defective engine components for three years or 5,000 hours of operation, whichever occurred first.
The log loader was plagued by mechanical problems from the beginning. A Howard-Cooper mechanic had to fix 'a fuel problem . . . {or} some filter' just to off-load the log loader from the delivery truck. And in the three or four months following delivery:
The hydraulic pressures were real sporadic and . . . would spike and blow hoses. The boom control was extremely radical. It would shake. The pressures would get so high that it would shake the cab and {you} couldn't control the operation of
Page 1 2 3 4 5 6 Washington Personal Injury Attorneys
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