Breach of Warranty or Implied Warranty

What is a breach of warranty or implied warranty?

A breach of warranty or implied warranty in Florida is a failure to perform one or more of the obligations under a warranty or an implied warranty. Generally, a cause of action for a breach of warranty must have an agreement for the sale of goods as a basis. A warranty is a representation made by the seller regarding the quality or condition of the goods. A breach of warranty occurs when the goods do not meet the standards outlined in the warranty.

Implied warranties are unwritten and unspoken promises that are automatically included in some contracts, regardless of whether the seller explicitly stated them. They are not expressed but are implied by law.

The following are some common examples of implied warranties:

• Warranty of merchantability: This warranty implies that the goods being sold are fit for their ordinary purpose and meet a basic level of quality.
• Warranty of fitness for a Particular Purpose: This warranty implies that the goods being sold are suitable for a specific purpose, as long as the buyer made known the intended use of the goods to the seller before the sale.
• Warranty of title: This warranty implies that the seller has the right to sell the goods and that the buyer will receive a good title.
• Warranty against hidden defects: This warranty implies that the goods sold are free from hidden defects that would make them unsuitable for their intended purpose.

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What legal issues typically arise regarding a breach of warranty or implied Warranty?

The following disputes are among the most common to a breach of warranty or implied warranty:

• Interpretation of the warranty: Disputes may arise over the interpretation of the warranty, such as the scope of the warranty, the conditions under which it applies, and the remedies available in case of a breach.
• Proof of breach: The buyer must prove that the seller breached the warranty, which can be a complex issue in some cases.
• Proof of damages: The buyer must prove that it suffered actual damages due to the breach of warranty, which can be challenging to quantify in some cases.
• Limitation of damages: The sales contract may limit the damages that the buyer can recover in case of a breach of warranty, which can be a complex issue in some cases.
• Standing: The buyer must have standing to bring a breach of warranty claim, which means that the buyer must have a sufficient relationship with the seller and be directly affected by the breach of warranty.

What relevant laws relate to a breach of warranty or implied warranty in Florida?

Florida law about breaches of warranty and implied warranties is primarily governed by the Uniform Commercial Code, which is codified in the Florida Statutes. The statutes define breach, outline what is required for a breach, and describe conditional actions that a seller can do to avoid claims for breach of warranty.

Express warranties are primarily governed as follows:

• Stat. § 672.313 – This statute defines an express warranty; specifically, it clarifies that an express warranty does not need to have formal words like “warrant” or “guarantee” attached to qualify for an express warranty.

Implied warranties are usually separated into the implied warranty of merchantability and the implied warranty of fitness for a particular purpose. The Florida Statutes include the following:

• Stat. § 672.314 – For implied warranty for merchantability, the goods must be, amongst other requirements, of average quality, fit for the ordinary purpose for which such goods are used, and conform to the promises or affirmations of fact made on the container or label. It also clarifies that implied warranties can arise through the dealing surrounding the purchase of the product.
• Stat. § 672.315 – This summarizes the law for the implied warranty of fitness for a particular purpose, including the specification that the seller must know the buyer is relying on the seller’s skill or judgment to select suitable goods before being liable for a breach of warranty.
• Stat. § 672.316 – There are many ways to exclude or modify warranties, including conspicuously writing in the warranty that there are no other warranties or including language indicating that the buyer must deal “with all faults.”

For both types of warranties, there are many remedies available under the Florida Statutes. For example, section 672.718 dictates that available damages, including compensatory damages, restitution, and other remedies such as resale. Further,  section 672.719 dictates that consequential damages are also available.

What is required to prove a case of breach of warranty or implied warranty in Florida?

The required elements to successfully prove this claim can depend on whether there is an express or implied warranty. These elements are general and can vary depending on the specific type of claim brought.

The plaintiff is required to show the following to prove a case of breach of express warranty:

• Plaintiff purchased a product;
• Defendant provided an express warranty by affirmation of fact or promise, or description of the product;
• The product failed to conform to the defendant’s affirmation or description; and
• Plaintiff suffered damages caused by the defendant’s breach.

To prove a case of breach of implied warranty generally, the plaintiff must show the following:

• Plaintiff was a foreseeable user of the product;
• The product was being used in the intended manner at the time of injury;
• The product was defective when transferred from the warrantor; and
• The defect caused the resulting injury.

When a set of facts is appropriate to meet the requirements of Breach of Warranty or Implied Warranties, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path forward to seek appropriate remedies, such as:

• Repair or replacement: The seller may be required to repair or replace the goods subject to the warranty or implied warranty.
• Refund: The buyer may be entitled to a refund of the purchase price if the goods cannot be repaired or replaced.
• Damages: The buyer may be entitled to damages for the harm caused by the breach of warranty or implied warranty. Such damages may include compensatory damages, such as the cost of repairing or replacing the goods, and consequential damages, such as lost profits or other indirect losses.
• Rescission: The buyer may be entitled to rescind the contract and recover the purchase price if the breach of warranty or implied warranty is material.
• Specific Performance: In some cases, the buyer may be entitled to specific performance, which requires the seller to perform their obligations under the contract.

To see what actions may be available for your unique situation, please contact our office to set up your initial consultation.

What are common defenses to Breach of Warranty or Implied Warranties in Florida?

Available defenses depend on whether the warranty was express or implied. Accordingly, the primary defenses to Breach of Express Warranty in Florida include:

• Disclaimer of warranty: The defendant may argue that they explicitly excluded or limited the warranty in a written contract, which would release them from liability for breach of warranty.
• Failure to give notice: The defendant could argue that the plaintiff failed to provide them with reasonable notice of the breach within a reasonable time after discovering the defect.
• Latent defect: The defendant may argue the defect wasn’t discoverable by the exercise of reasonable diligence and that they didn’t have knowledge of the defect.
• No causal connection: The defendant could argue that the plaintiff’s harm wasn’t caused by the defendant’s breach of warranty but by some other cause.
• Limitation of damages: The defendant could argue that the terms of the warranty limit the damages claimed by the plaintiff.
• Statute of limitations: If the plaintiff brings the lawsuit after the statute of limitations expires, there will not be a successful claim. In Florida, the statute of limitations for a breach of implied warranty is four years from the delivery of the goods. For a claim of breach of express warranty, the warranty determines the statute of limitations; however, if the express warranty does not specify, the four-year statute of limitations from implied warranties applies.

In addition to the previous defenses, there are additional defenses for a Breach of Implied Warranties, including:

• Unreasonable reliance: In the case of an Implied Warranty of Fitness for a Particular Purpose, the seller could allege that the buyer’s reliance was unreasonable and that the buyer should have made its inspection or investigation of the goods before purchasing them.
• Lack of privity: Under Florida law, the buyer must be in privity with the seller to have a claim. So, the seller may argue that privity did not exist because the seller did not have a direct contractual relationship with the buyer and, therefore, cannot be held liable for breach of implied warranty.
• Improper use or modification: In the case of an Implied Warranty of Merchantability, the seller could allege that the buyer did not use the item for its proper or intended purpose, so the warranty was not breached.

When specifically defending against a claim of breach of implied warranty of merchantability, one core strategy is to emphasize that the buyer had unreasonable reliance on the seller before purchasing. Unreasonable reliance can be demonstrated by showing that the seller did not know the buyer was relying on the seller’s expertise, the buyer inspected the goods before purchasing, or that the seller was not an expert upon which the buyer could rely.

Another core strategy, whether defending against an express or implied warranty, is to claim that the seller did not make a warranty in the first place. This strategy necessitates providing evidence in the sales contract that the warranty was disclaimed or excluded.

To see what defenses may be available for your unique situation, please contact our office to set up your initial consultation.

Have more questions about a breach of warranty or implied warranty -related situation?

Crucially, this overview of breach of warranty or implied warranty does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.