In a trio of case opinions issued on May 29, 2018, – all written by Chief Justice Nancy Rice who will retire in June – the Colorado Supreme Court ruled against the arguments of insurance companies.
I previously have urged you to limit the remedies available under your express warranty (e.g. to repair or replacement), and to disclaim liability for incidental and consequential damages. Here, we’ll discuss a common argument made by people who want to render your efforts meaningless.
We bring our series on implied warranties to a close with a discussion about the consequences of breaching an implied warranty. The general rule is that the damages for breach of warranty are the difference in value of the goods as delivered and the value of the goods as promised. But, that simplistic statement glosses over many important issues that you need to consider in evaluating how to price your product.
I recently had occasion to litigate the issue of whether a client was barred by a contractual consequential damages waiver from recovering lost profits. I had never given the issue much thought, but the contract provision was a problem for our client, so I needed a workaround.