The Bullet Point is a biweekly update of recent, unique, and impactful cases in state and federal courts in the area of commercial litigation. We’re pleased to expand the Bullet Point from its previous coverage of Ohio case law to include additional areas in McGlinchey’s footprint.
Measure of Damages for breach of implied warranty
Koons v. Ozzy’s Cash & Go Auto, LLC, 4th Dist. Scioto No. 20CA3919, 2021-Ohio-3337
In this appeal, the Fourth Appellate District affirmed the trial court’s decision, agreeing that a buyer who revokes a contract for purchase of a motor vehicle is entitled to the return of the purchase price in addition to incidental or consequential damages.
The Bullet Point: At issue in this dispute is the proper measure of damages for a breach of an implied warranty for the sale of two motor vehicles. Here, the plaintiffs purchased two motor vehicles from the defendant’s used car business. Although both vehicles were sold “as-is,” the plaintiffs purchased extended warranties for both vehicles. Approximately three weeks later, the plaintiffs asked the defendant to rescind the agreements as both vehicles had significant mechanical problems. The defendant refused, stating that the plaintiffs would have to wait 30 days “for the warranty to kick in.” The plaintiffs filed suit, alleging revocation of acceptance of the purchase agreements. The trial court found the “as-is” clauses in the purchase agreements were contingent upon the…