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Moore v. Coachmen Industries Inc.

5/5/1998

oducts liability case.


A. Negligence Claims


Generally, ordinary negligence cases are governed by a three-year statute of limitations, and the cause of action accrues at the time of injury . N.C. Gen. Stat. ยง 1-52(16)(1996). A cause of action for negligence "shall not accrue until bodily harm to the claimant or physical damage to his property becomes apparent or ought reasonably to have become apparent to the claimant, whichever event first occurs. Provided that no cause of action shall accrue more than 10 years from the last act or omission of the defendant giving rise to the cause of action." Id.


In the case sub judice, plaintiffs' claims for negligence (claims one and two) accrued on 6 November 1993, when their recreational vehicle and its contents were destroyed by fire. Their suit filed on 1 June 1995, was then timely filed as to plaintiffs' negligence claims.


B. Breach of Warranty Claims


1. Defendants Sportscoach and Coachmen


At the time of the purchase of the recreational vehicle, defendant Sportscoach gave plaintiffs a Limited Warranty, which states in pertinent part:


Sportscoach Corporation of America will, for one year from the retail purchase date, or for the first 15,000 miles of use, whichever comes first, make repairs which are necessary because of defects in material or workmanship. We will repair or replace any defective part at no cost to you. . . .


WE SHALL NOT BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, such as your expenses for transportation, lodging, loss or damage to your personal property, loss of use of your product, inconvenience, or loss of income. Some states do not allow exclusion or limitation of incidental or consequential damages, so the above limitation or exclusion may not apply to you.





IMPLIED WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE LIMITED IN DURATION TO THE TERM OF THIS WRITTEN WARRANTY. Some states do not allow limitations on how long an implied warranty lasts, so the above limitation may not apply.


The limitations found in this warranty were effective for the following reasons: First, plaintiffs' contention that the service contract between themselves and a finance company somehow extends the limited warranty issued by defendant Sportscoach is without merit. Plaintiffs have not affirmatively shown any relationship between the service contract and defendant Sportscoach or defendant Coachmen. In addition, plaintiffs have failed to plead or otherwise demonstrate that the limitations found in the Limited Warranty are unconscionable, or otherwise invalid.


As this is not a case involving personal injury, plaintiffs do not enjoy the benefit of the presumption of unconscionability of a limitation of damages, but bear the burden of showing unconscionability. Byrd Motor Lines v. Dunlop Tire and Rubber, 63 N.C. App. 292, 297, 304 S.E.2d 773, 777 (1983). Although the term "unconscionable" is not defined in North Carolina's version of the Uniform Commercial Code (UCC), this Court noted in Billings v. Harris Co., 27 N.C. App. 689, 220 S.E.2d 361 (1975), aff'd, 290 N.C. 502, 226 S.E.2d 321 (1976), "Unconscionability relates to contract terms that are oppressive. It is applicable to one-sided provisions, denying the contracting party any opportunity for meaningful choice." Id. at 695, 220 S.E.2d at 366. As plaintiffs have failed completely to show that the limits imposed by the Limited Warranty are not applicable or unconscionable under these facts, we hold that defendant Sportscoach's Limited Warranty was effective to bar as untimely any claims for breach of ex

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