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Contracts Keyed to Fuller
Pierce v. Catalina Yachts, Inc.
Citation:
2 P.3d 618 (2000)Facts
In June 1992, Jim and Karen Pierce purchased a forty-two-foot sailboat newly built by Catalina Yachts. Catalina provided a limited warranty promising to repair or pay for repair of any below-waterline blisters that might appear in the gel coat, while expressly disclaiming responsibility for consequential damages. In June 1994, the Pierces discovered gel-coat blisters on the hull and rudder and promptly notified Catalina, submitting a repair estimate of $10,645. Catalina refused to accept this estimate, insisting that the hull only needed minor patching. After six months of unsuccessful attempts to convince Catalina that the gel coat needed replacement, the Pierces sued. The jury found that Catalina breached its gel-coat warranty, acted in bad faith in failing to honor its warranty obligations, and awarded the Pierces $12,445 as the reasonable cost of repair.
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