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ETCHEN v. HOLIDAY RAMBLER CORP.

11/25/1997

A buyer seeks warranty damages from a conflagration that ravaged his motor home during the first year of ownership. After a [574 NW2d Page 357]


bench trial, the trial court found the buyer failed to establish seller and manufacturer had breached express warranties and he failed to prove his other tort claims. The court did not have substantial evidence to support its conclusion the plaintiff did not prove breach of express warranty. After reviewing the evidence presented to the trial court, we find the plaintiff proved his breach of warranty claims and reverse.


I. Background & Facts.


Carroll Etchen purchased a new Holiday Imperial motor home on June 25, 1992. It was manufactured by defendant, Holiday Rambler Corporation, and sold by Paine Recreational Vehicles for $79,685.80. Defendant, Dexter Axle manufactured the rear axle.


On April 21, 1993, Etchen was driving the motor home, heard a thump underneath the motor home, and in the rear view mirror saw a piece fly out from underneath the motor home. He was bringing the vehicle to a stop when he heard a tire blow and then realized the rear tire had erupted in flames. While trying to extinguish the fire, Etchen noticed there was a piece of the brake drum caught between the axle assembly and the tire. The piece was on fire and he could not extinguish it. The motor home and its contents were ruined. The total loss was $84,372 with a salvage value of $2000.


Both defendants expressly warranted the motor home. Holiday Rambler's warranty was for the first twelve months or 12,000 miles. Dexter Axle's was for one year from the date of purchase. At the time of the fire, Etchen had driven the motor home 3400 miles and owned the motor home for less than ten months. Both defendants refused to perform their warranties.


Etchen filed a petition against Holiday Rambler and Dexter Axle alleging breach of express warranty and other tort claims. At the bench trial, all experts agreed the origin of the fire was in the vicinity of the left rear tag axle bearing housing system. They also agreed that the cause of the bearing failure and fire was improper adjustment of the bearing assembly, known as improper "pre-load." This means that the adjusting nut on the end of the spindle under the retainer and the end cap has been torqued too much causing increased friction. The friction causes the grease to break down and the lack of lubrication eventually causes over-heating causing the unit to break apart. The fact of who improperly adjusted the bearing assembly is in dispute. [574 NW2d Page 358]


The case was submitted on September 1, 1995. The court issued its ruling on February 21, 1996, finding neither Holiday Rambler nor Dexter Axle liable.


II. Standard of Review.


A law action is reviewed for correction of errors. Iowa R. App. P. 4. The trial court's findings of fact have the effect of a special verdict, Iowa R. App. P. 4, and are binding on us if supported by substantial evidence. Iowa R. App. P. 14(f)(1); Schmitz v. Crotty, 528 N.W.2d 112, 115 (Iowa 1995) (citation omitted).


III. Trial Court's Conclusions of Law


A. Burdens. The burden was upon Etchen to plead and prove his breach of warranty claim. Drager v. Carlson Hybrid, 246 Iowa 957, 959, 69 N.W.2d 58, 59 (1955). The trial court concluded he had not. When the trial court, following a bench trial, denies recovery because a party failed to sustain its burden of proof on an issue, we will not interfere with the trial court's judgment unless the party has carried its burden as a matter of law. Schmitz v. Crotty, 528 N.W.2d 112, 115 (Iowa 1995). It was Dexter Axle's burden to prove the all

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