PER CURIAM.
Following a two-day trial in May 2013, a Bullock County jury returned a $450,000 verdict in favor of Michael Shepherd on a breach-of-warranty claim he asserted against Barko Hydraulics, LLC ("Barko"). Barko appeals the judgment entered on that verdict. We reverse and remand.
On September 12, 2008, Shepherd purchased a Barko 495ML knuckle boom loader ("the 495ML loader") from G & S Equipment Company in Prattville for use in his logging operation.
The warranty excluded coverage for "[d]amage due to failure to maintain or use the Barko product or part according to manuals, schedules, or good practice." The warranty limited Barko's potential liability under the warranty as follows:
Finally, the warranty stated that it was issued "in lieu of all other warranties express or implied, statutory, written or oral" and that there was "no implied warranty of merchantability or fitness for a particular purpose." Shepherd signed a receipt indicating that he understood the warranty and the maintenance requirements of the 495ML loader.
Shepherd testified that he was initially pleased with the performance of the 495ML loader after incorporating it into his logging operation. Shepherd testified, however, that after approximately four months of use the 495ML loader began having problems with its hydraulic system and with fuel consumption. Shepherd testified at trial that he informed G & S Equipment about these problems with the 495ML loader numerous times. G & S Equipment's owner, Mike Guy, testified that G & S Equipment was not notified of
In August 2009, Shepherd brought the 495ML loader to G & S Equipment for it to complete some outstanding warranty repairs. At the time, the 495ML loader's clock was at approximately 1900 hours; thus, only 1 month or 100 hours remained before the warranty expired. G & S Equipment replaced the swivel, replaced the solenoids, and repaired the joysticks used by the operator to control the equipment on the loader. Guy testified at trial that those repairs were both common and relatively minor. Guy also testified, however, that during the course of making those repairs, his shop noticed that Shepherd's maintenance of the 495ML loader was lacking — specifically moving parts were not being greased and both hydraulic filters and air filters were not being changed in accordance with the manufacturer's recommended schedule. Both Shepherd and his employee, George Oliver, however, disputed the idea that the 495ML loader was not being properly maintained, testifying that they regularly maintained it in a fashion similar to every other piece of logging equipment they had used in their many years — approximately 20 and 30 years, respectively — of working in the logging industry. Shepherd also emphasized that G & S Equipment's written service records do not indicate that the 495ML loader was not being properly maintained.
In November 2010, when the 495ML loader had approximately 4,300 hours on its clock, Shepherd transported it to G & S Equipment for repairs after the hydraulic pumps began making noise. G & S Equipment confirmed that the hydraulic pumps had failed and notified Shepherd that the needed repairs, costing approximately $10,000, would not be covered under the warranty because the warranty period had expired. At Shepherd's request, G & S Equipment contacted Barko, which confirmed that it would not authorize or reimburse G & S Equipment for making the needed repair because of the expiration of the warranty. At that point, Shepherd told G & S Equipment that he could not afford to pay for the repairs to the 495ML loader, nor could he continue to meet his obligation to Wells Fargo. He therefore left the 495ML loader with G & S Equipment and apprised Wells Fargo of its location and of his intention to make no further payments on it. Wells Fargo subsequently repossessed the 495ML loader, sold it, and obtained a $124,184 deficit judgment against Shepherd.
On January 28, 2011, Shepherd sued Barko, G & S Equipment, and Cummins Mid-South, LLC, the manufacturer of certain component parts of the 495ML loader, asserting fraud, negligence and/or wantonness, and multiple breach-of-warranty claims. Shepherd sought both compensatory damages for lost profits and mental anguish and punitive damages. Ultimately, G & S Equipment and Cummins Mid-South were dismissed from the action, and, during the course of the trial, all of Shepherd's claims against Barko except a breach-of-express-warranty claim were withdrawn or dismissed. On May 2, 2013, the breach-of-express-warranty claim was submitted to the jury following a two-day trial and, after the jury returned a $450,000 verdict in favor of Shepherd and against Barko, the trial court entered a judgment consistent with the verdict. Barko's subsequent postjudgment motion renewing its previous motion for a judgment
On appeal, Barko argues that the trial court erred by denying Barko's motion for a judgment as a matter of law on Shepherd's breach-of-express-warranty claim and by allowing the jury to award damages for mental anguish and compensatory damages exceeding the amount it would have cost to repair the 495ML loader. We review Barko's first argument concerning its motion for judgment as a matter of law in accordance with the following standard of review:
Waddell & Reed, Inc. v. United Investors Life Ins. Co., 875 So.2d 1143, 1152 (Ala. 2003).
As to Barko's second argument regarding damages, generally, the assessment of damages is within the sole province of the jury. This Court will not substitute its judgment for that of the jury and will not disturb a damages award unless the award is the product of bias, prejudice, improper motive or influence or was reached under a mistake of law or in disregard of the facts. See, e.g., Daniels v. East Alabama Paving, Inc., 740 So.2d 1033, 1050 (Ala.1999).
Barko argues that Shepherd's breach-of-express-warranty claim should never have been submitted to the jury because, it says, Shepherd failed to adduce substantial evidence indicating that the hydraulic pumps stopped working on the 495ML loader because of a defect. More particularly, Barko contends that, to support a breach-of-express-warranty claim, a plaintiff must present expert testimony detailing the defect that caused the product to fail. Alternatively, Barko argues that there was substantial evidence showing that Shepherd had not maintained the 495ML loader in accordance with the factory-suggested schedule. Barko also argues that the warranty period had expired when the hydraulic pumps failed.
Shepherd counters that he presented substantial evidence showing that Barko had breached the express warranty. Specifically, Shepherd says that he presented substantial evidence showing that the 495ML loader did not preform as warranted,
"Express warranties should be treated like any other type of contract and interpreted according to general contract principles." See Ex parte Miller, 693 So.2d 1372, 1376 (Ala.1997) (citing 2 Alphonse M. Squillante & John R. Fonseca, Williston on Sales § 15-9 (4th ed.1974)). "In Alabama, the crux of all express warranty claims is that the goods did not conform to the warranty." Ex parte Miller, 693 So.2d at 1376. Barko warranted the 495ML loader to be free from defects "in material or workmanship under normal use, maintenance and service."
Barko asserts that Shepherd failed to prove that there was any defect in the 495ML loader. The argument Barko advances is that, like the plaintiffs in actions based on the theory of products liability, the plaintiff asserting a breach-of-warranty claim must establish the presence of a specific defect. We conclude that the identification of an existing defect is not essential to recovery upon an express warranty. See Ex parte Miller, 693 So.2d at 1376,
In this case, the evidence showed that, after four months of use, the 495ML loader began to overheat and to use excessive fuel and hydraulic fluid. Ultimately, after the 495ML loader was serviced repeatedly, the hydraulic pumps stopped working. "[W]e have held that the application of an express warranty is a question of fact for the trier of fact. Ex parte Miller, 693 So.2d 1372 (Ala.1997)." Vesta Fire Ins. Corp. v. Milam & Co. Constr., Inc., 901 So.2d 84, 104 (Ala.2004). The parties submitted conflicting evidence. Therefore, the trial court properly submitted this issue to the jury for resolution.
In the alternative, Barko maintains that Shepherd's improper maintenance of the 495ML loader precludes any breach-of-warranty claim. We are not persuaded by Barko's argument in that regard. The evidence was conflicting as to whether Shepherd properly maintained the 495ML loader, and that issue was likewise proper for jury resolution.
Guy, G & S Equipment's owner and Barko's Prattville dealership representative, testified that his shop noticed that
Regarding Barko's contention that the warranty period had already expired when the hydraulic pumps failed, we are likewise not persuaded. Barko had an obligation under the warranty. After four months of use, the 495ML loader began to overheat and to use excessive fuel and hydraulic fluid. After the 495ML loader was repeatedly serviced, the hydraulic pumps stopped working. Barko failed to correct the problems with the 495ML loader after repeated complaints and servicings. Given the numerous attempts at repair over the extended period, the jury could properly have concluded that the 495ML loader had not been repaired and that the warranty had failed of its essential purpose.
Barko argues that Shepherd's recovery was limited to the cost to repair of the 495ML loader. Barko also argues that the trial court erred in instructing the jury on mental-anguish damages. Shepherd says that, because the warranty failed of its essential purpose, he was entitled to an award of damages as allowed by the Uniform Commercial Code (the "UCC"), as well as damages for mental anguish. Shepherd claims that Barko failed to preserve its claim that the trial court erred in instructing
The measure of damages for breach of warranty arising from the sale of goods is governed by § 7-2-714 and § 7-2-715, Ala.Code 1975. Section 7-2-714(2) provides, in part:
Section 7-2-715 provides for the recovery of incidental and consequential damages in appropriate cases. It provides, in part:
Generally, mental-anguish damages are not recoverable in a breach-of-contract action. Bowers v. Wal-Mart Stores, Inc., 827 So.2d 63, 68-70 (Ala.2001). This Court, however, recognized in Bowers a limited mental-concern or solicitude exception to the general rule. Id.
In this case, under the UCC, the jury could award the difference between the actual value of the 495ML loader and its value had it been as warranted and incidental or consequential damages. However, mental-anguish damages are not recoverable under the facts of this case. Shepherd alleged that he lost his business because of the problems with, and the failure of, the 495ML loader. Shepherd claimed that the loss of his logging business caused his divorce, resulting in his spending less time with his daughter. Here, Barko's contractual duty to Shepherd was not "`so coupled with matters of mental concern or solicitude ... that a breach of that duty will necessarily or reasonably result in mental anguish or suffering....'" F. Becker Asphaltum Roofing Co. v. Murphy, 224 Ala. 655, 657, 141 So. 630, 631 (1932) (quoting 8 R.C.L. p 529, § 83).
In this case, the jury returned a general verdict. Because general damages were awarded, there is no way to determine the amount the jury attributed to each type of damages, some of which were properly awardable, and some of which were not. Accordingly, we reverse the judgment in its entirety and remand the case for a new trial.
We reverse the judgment entered against Barko, and we remand the case for entry of an order granting Barko's motion for a new trial.
REVERSED AND REMANDED WITH DIRECTIONS.
MOORE, C.J., and BOLIN and MAIN, JJ., concur.
MURDOCK, J., concurs specially.
SHAW, J., concurs in the result.
PARKER and BRYAN, JJ., concur in part and dissent in part.
STUART, J., concurs in the result in part and concurs in part and dissents in part as to the rationale.
MURDOCK, Justice (concurring specially).
I concur in the main opinion, as well as in Justice Shaw's special writing regarding consequential and incidental damages. For its part, the main opinion holds that it is not necessary for a purchaser making a warranty claim under the Uniform Commercial Code to present expert testimony or other evidence to explain the specific defect giving rise to a warranty claim and that "[i]t is sufficient if, as here, the evidence shows, either directly or by permissible inference, that the 495ML loader was defective in its performance or function or that it otherwise failed to conform to the warranty." 167 So.3d at 310. I agree with this statement in the context presented here, where the evidence of a failure is coupled with evidence upon which a jury could find that the purchaser properly maintained and used the product or that any deficiency in the maintenance or use was not the cause of the failure of the product. Were we to hold otherwise based on Ex parte Miller, 693 So.2d 1372, 1376 (Ala.1997), as Barko Hydraulics, LLC, urges, then it appears to me that we would have to ignore the logical inference possible in a case in which a jury is presented with substantial evidence showing no lack of proper maintenance or use of the product that could have caused its failure and place too much weight on the discussion by Miller as to cases that might involve warranties against "defects in materials and workmanship," which Miller did not.
SHAW, Justice (concurring in the result).
I concur in the result reached by the main opinion. I write specially to explain why the trial court did not err in submitting to the jury the issue of incidental and consequential damages.
Incidental and consequential damages can be recovered for a seller's breach. Ala.Code 1975, §§ 7-2-714(3) and -715. Under Ala.Code 1975, § 7-2-719(1), parties may agree to limit remedies for breaches, including damages. However, § 7-2-719(2) states that "[w]here circumstances cause an exclusive or limited remedy to fail of its essential purpose, remedy may be had as provided in this title." Under the authority of Massey-Ferguson, Inc. v. Laird, 432 So.2d 1259 (Ala.1983), when a limited remedy fails of its essential purpose, the damages available in § 7-2-714, including incidental and consequential damages, can be recovered, despite the limitations in the contract.
In the instant case, the warranty issued by Barko Hydraulics, LLC ("Barko"), limited recovery to the replacement of defective parts and barred incidental and consequential damages. However, the main opinion holds that there was sufficient evidence from which the jury could conclude that Barko's warranty failed of its essential purpose. Specifically, there were numerous complaints by Michael Shepherd
BRYAN, Justice (concurring in part and dissenting in part).
I concur in all aspects of the main opinion except insofar as it reverses the judgment in its entirety and remands for a new trial. I would affirm the judgment as to liability, reverse the judgment as to damages, and remand for a new trial on the issue of damages only. See, e.g., LaFarge Bldg. Materials, Inc. v. Stribling, 880 So.2d 415 (Ala.2003).
PARKER, J., concurs.
STUART, Justice (concurring in the result in part and concurring in part and dissenting in part as to the rationale).
I agree with the conclusion of the main opinion that the trial court erred by instructing the jury on mental-anguish damages and subsequently entering judgment on the general verdict returned by the jury, which presumably included such damages. However, I believe that it is ultimately unnecessary to address the damages issue because, in my view, the trial court erred by denying the motion filed by Barko Hydraulics, LLC ("Barko"), seeking a judgment as a matter of law on Michael Shepherd's breach-of-warranty claim. That motion was supported by the facts in the record and the law and should have been granted at the close of evidence before the case was submitted to the jury. Accordingly, although I too would reverse the judgment entered by the trial court in toto, I would remand the cause, not for a new trial, but for the trial court to enter a judgment as a matter of law in favor of Barko.
The main opinion correctly cites Ex parte Miller, 693 So.2d 1372, 1376 (Ala. 1997), for the proposition that express warranties are to be treated like any other type of contract and interpreted according to general contract principles. 167 So.3d at 310. Foremost among those principles is the idea that an agreement that is complete, clear, and unambiguous on its face must be enforced according to the plain meaning of its terms. Black Diamond Dev., Inc. v. Thompson, 979 So.2d 47, 52 (Ala.2007). In this case, the express warranty Barko is alleged to have breached was clear and unambiguous — Barko warrantied that the 495ML loader purchased by Shepherd would be "free from defects in material and workmanship under normal use, maintenance and service." Importantly, this is the only warranty at issue in this case; we are not concerned with implied warranties — only this express written warranty. Shepherd asserts that Barko has breached this warranty; however, he has not identified for this Court any evidence or testimony in the record indicating that the 495ML loader suffered from "defects in material and workmanship." Rather, he essentially argues that the mere fact that the hydraulic pumps on the 495ML loader failed is itself sufficient evidence that the 495ML loader was defective. This argument is encapsulated by the following excerpt from Shepherd's brief:
Shepherd's brief, pp. 14-16 (footnotes omitted). Shepherd's argument might be persuasive if we were considering whether there had been a breach of a broad implied warranty such as an implied warranty of merchantability; however, in the context of the express warranty in this case, his argument is, quite simply, incorrect. As shown below, our caselaw makes it clear that one asserting a breach-of-express-warranty claim based on a warranty warranting a product to be free from defects in material or workmanship must present evidence of a specific defect that constitutes a breach of the warranty.
The express warranty offered by Barko — and accepted by Shepherd — provided that Barko would repair or replace non-structural components of the 495ML loader, such as the hydraulic pumps, if those parts "prove[d] to be defective in material or workmanship under normal use, maintenance and service within one (1) year or 2,000 hours, whichever occurs first from first day in service." (Emphasis added.) Notably, Barko did not agree to repair or replace nonstructural component parts of the 495ML loader merely upon proof of the failure of a part. This Court explained the significance of that difference in Ex parte Miller, another case involving a warranty dispute and a Barko-manufactured piece of logging equipment.
In Miller, the trial court entered a judgment as a matter of law in favor of Pettibone Corporation, the parent company of Barko, on various claims asserted by Thomas Miller, the buyer of a Barko 775 feller buncher, after that feller buncher experienced numerous hydrostatic failures. 693 So.2d at 1373-74. Many of the Barko 775 feller buncher's components, including the hydrostat, were manufactured by Sauer-Sundstrand, Inc. ("Sundstrand"), and Barko and Sundstrand shared responsibility for the hydrostatic motor and pump under a component warranty that had been issued Miller:
693 So.2d at 1375 n. 5. After the Court of Civil Appeals affirmed the trial court's judgment, Miller petitioned this Court for
693 So.2d at 1376-77 (footnote omitted). Thus, in Miller we held that it was error for the trial court to require a party asserting a warranty claim to prove a specific defect in a warrantied product when the warranty itself broadly warranted against "failures" of the product. In the instant case, we are presented with the converse situation — the trial court did not require a party asserting a warranty claim to produce
The main opinion quotes the admonition of Ex parte Miller, 693 So.2d at 1376, that "`"[c]are must be taken to avoid elevating a defect in the goods to the status of an essential element that must be shown in order to recover for a breach of an express warranty,"'" 167 So.3d at 310 n. 2 (quoting in turn Ronald A. Anderson, Anderson on the Uniform Commercial Code § 2-313:217 (3d ed.1995)), but fails to recognize that that admonition was made in the context of a warranty broadly warranting a product from any failure — not just a failure caused by a defect in material or workmanship. Moreover, the main opinion inexplicably fails to give any effect to the subsequent sentence in Ex parte Miller providing that "[i]f a company ... wishes to warrant only defects in material and workmanship, then it may do so," and, in fact, the main opinion effectively holds the exact opposite — a company cannot warrant only defects in material and workmanship and, if a company clearly and unambiguously does so, this Court is providing notice in this opinion that it will nevertheless rewrite the warranty to generally protect against any failure. This of course is contrary to our long-standing precedent that we will enforce contracts as they are written and will not rewrite them. Vankineni v. Santa Rosa Beach Dev. Corp. II, 57 So.3d 760, 762 (Ala.2010).
Moreover, with regard to the global statement in the main opinion that "[w]e conclude that the identification of an existing defect is not essential to recovery upon an express warranty," 167 So.3d at 310, I would note that the terms of an express warranty should dictate what evidence is required to prove a breach of that warranty, not an all embracing rule pronounced by this Court. See Cipollone v. Liggett Grp., Inc., 505 U.S. 504, 525, 112 S.Ct. 2608, 120 L.Ed.2d 407 (1992) ("A manufacturer's liability for breach of an express warranty derives from, and is measured by, the terms of that warranty."). The Court of Special Appeals of Maryland explained this principle as follows in a breach-of-express-warranty case involving a tire:
Finally, although I have already noted that Shepherd adduced no evidence of defects in material and/or workmanship that might serve as the basis for a breach-of-warranty claim based on the express warranty in this case — and, accordingly, the jury's verdict is necessarily based on nothing more than mere speculation that there might have been such a defect — I write further to emphasize the absence of any expert testimony indicating that there was a defect in material or workmanship. In both its preverdict motion for a judgment as a matter of law and its renewed motion filed after judgment was entered on the jury's verdict, Barko argued that Shepherd had not established what caused the failure of the hydraulic pumps on the 495ML loader, much less that that failure was caused by a defect in material or workmanship. Barko also argued that Shepherd's failure to introduce any expert testimony establishing a defect was fatal to his case. In both motions it quoted the following passage from this Court's opinion in Brooks v. Colonial Chevrolet-Buick, Inc., 579 So.2d 1328, 1333 (Ala.1991):
Like Brooks, the only supposed "evidence" of a defect in material or workmanship in this case was the fact that a piece of equipment failed.
579 So.2d at 1333. It seems uncontroversial to presume that a typical juror would likely be more familiar with the brake system on an automobile than the hydraulic system on heavy logging equipment; accordingly, Brooks would indicate that expert testimony was necessary in this case as well and that Shepherd's failure to present such evidence required the granting of Barko's motion for a judgment as a matter of law.
Accordingly, because neither substantial evidence nor any expert testimony was adduced at trial indicating that the 495ML loader manufactured by Barko and purchased by Shepherd suffered from a defect in material and/or workmanship, the trial court erred by not granting Barko's motion for a judgment as a matter of law. This Court should accordingly direct the trial court to enter a judgment as a matter of law in favor of Barko; consideration of the other issues raised by the parties is unnecessary.