Lincoln Composites, Inc. v. Firetrace USA, LLC
United States Court of Appeals for the Eighth Circuit
825 F.3d 453 (2016)
Lincoln Composites, Inc. (plaintiff) bought defective tubing from Firetrace USA, LLC (defendant), whose contract limited remedies to repair or replacement. Firetrace repeatedly tried but failed to fix the defect over 18 months, after which Lincoln demanded a refund; Firetrace refused, citing the limited warranty. Lincoln sued, arguing its own purchase orders incorporated separate website terms that didn't limit remedies, and that the repair-and-replace warranty had failed its essential purpose given expert testimony that the remaining tubing would continue failing. Firetrace requested a specific jury instruction on when a repair-or-replace remedy fails its essential purpose but didn't object to the more general instruction the court actually gave; after the jury awarded Lincoln $900,000, Firetrace moved for a new trial, and appealed after that motion was denied.
Whether, if an exclusive limited warranty fails its essential purpose of providing conforming goods within a reasonable time, the buyer may recover other remedies.