Manouchehri v. Heim
Court of Appeals of New Mexico
941 P.2d 978 (1997)
Manouchehri (plaintiff) contracted to buy a used x-ray machine "guaranteed to work" from Heim (defendant), who installed a substantially less powerful machine than promised and, despite repeated requests and an inspection, never made repairs. Manouchehri sued for breach of warranty and, at trial, presented testimony of lost profits of $79 per x-ray on an average of 30 x-rays monthly; the court found the machine had no salvageable value (since removal costs exceeded any worth) and awarded $1,900 in direct damages plus $2,500 in consequential damages, and Heim appealed, arguing the losses were avoidable, unforeseeable, and too indefinite.
Whether, under the UCC, an award of consequential damages for lost profits due to a breach of warranty is proper.