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Sales Keyed to Keating
In re Rafter Seven Ranches, L.P.
Citation:
546 F.3d 1194 (2008)Facts
Rafter Seven Ranches needed irrigation sprinkler systems for its farming operations and contacted Ochs Irrigation. Unable to afford the systems outright, Rafter Seven entered into finance lease agreements with C.H. Brown Company in April 2001 for four used sprinkler systems to be supplied and installed by Ochs, with delivery expected by May 2001 for the planting season. The leases specified manufacturer, model, and serial numbers, disclaimed Brown’s warranty obligations, and required Rafter Seven to look only to Ochs for defective equipment. The first sprinkler arrived in late July, nonconforming and defective, but Rafter Seven used it anyway. Between mid-August and mid-September, two additional nonconforming sprinklers were delivered. Friesen immediately recognized them as “junk,” refused installation, but left them in the fields. Approximately six weeks later, on November 1, 2001, Rafter Seven sent a letter to Brown stating it would not honor the leases. The fourth sprinkler was never delivered.
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