Schurtz v. BMW of North America

Schurtz (plaintiff) bought a car from BMW (defendant) under a limited warranty giving BMW sole discretion to repair or replace the vehicle and disclaiming incidental and consequential damages for any breach. When Schurtz's vehicle developed problems and BMW refused to repair or replace it, Schurtz sued for breach of warranty seeking incidental and consequential damages, arguing that under Utah law, a warranty that fails its essential purpose renders any disclaimer of those damages invalid; BMW argued such a disclaimer fails only if unconscionable. The trial court upheld the disclaimer and granted BMW partial summary judgment, and Schurtz appealed.