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Remedies Keyed to Tabb, 8th
Aries v. Palmer Johnson, Inc.
Citation:
735 P.2d 1373 (1987)Facts
Frank Aries, an experienced yacht owner and Arizona resident, was solicited by Palmer Johnson, Inc. (PJ), a Wisconsin yacht manufacturer, through advertisements in national yachting magazines, promotional materials, and telephone calls to Arizona. In August 1982, Aries paid a $100,000 deposit toward purchase of a custom Alden 75 yacht called “Scheherazade” for $1,237,500. The contract specified delivery “on or about June 25, 1983.” Aries informed PJ of his intended use: a shakedown cruise on Lake Michigan, attendance at the America’s Cup races in August-September 1983, and Caribbean cruising. From fall 1982 through spring 1983, PJ repeatedly assured Aries that construction was on schedule. However, PJ diverted labor to other projects, particularly the yacht Ondine which had a $2,000 per day late penalty clause. PJ stopped carpentry work on Scheherazade for several months without informing Aries. The yacht was not delivered until November 23, 1983, five months late, depriving Aries of all intended summer and fall use. After delivery, the yacht was defective and required dry-dock repairs for approximately 168 days during the first year.
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