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Contracts Keyed to Farnsworth
NY Drilling, Inc. v. TJM, Inc
Citation:
573 F. Supp. 3d 854 (2021)Facts
NY Drilling, a Queens-based construction company, purchased two hydraulic crawler drilling rigs from TJM, Inc., the exclusive U.S. distributor for HD Engineering (HDE), a Hong Kong-based manufacturer. The first rig, Model HD110-4T, was purchased in July 2018 for $482,137 pursuant to a written contract that contained a warranty disclaimer in all capital letters below the signature block. Shortly after delivery, the front of the machine collapsed, and despite repairs, it failed again a few months later. TJM then replaced it with a second rig, Model HD200A, in November 2018 under a separate contract containing the same warranty disclaimer. The HD200A also malfunctioned multiple times. In July 2019, NY Drilling notified TJM of a failing mast section that could cause structural failure. TJM took the rig for repairs in August 2019 but had not returned it as of September 2021. NY Drilling sued TJM, alleging breach of implied warranties of merchantability and fitness, seeking reimbursement for repair costs, and claiming third-party beneficiary status under a warranty agreement between TJM and HDE.
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