Pierce v. Catalina Yachts, Inc.

The Pierces (plaintiffs) bought a yacht from Catalina (defendant) under a preprinted warranty promising hull-blister repairs but disclaiming consequential damages; when blisters appeared and Catalina refused to repair or pay for repairs despite repeated requests, the Pierces sued, and the jury found Catalina breached the warranty, that the Pierces could not have avoided their damages, and that Catalina acted in bad faith. The trial court nonetheless enforced the consequential-damages bar as not unconscionable and limited recovery to repair costs, and the Pierces appealed.