Sales and Leases - A Problem-based Approach, 2016a

limitations governing the elected theory will apply. Weibel v. Ronan State Bank, 776 P.2d
837 (Mont. 1989). Other jurisdictions are not as generous. Some require a lawsuit
sounding in both tort and contract to be filed within the shorter statutory period of
limitations. See, for example, Becker v. Volkswagen of America, Inc., 125 Cal. Rptr. 326
(Ct. App. 1975), where the California court held that in a breach of warranty claim that
also sounded in negligence, the shorter one-year period of limitations for negligence
applied.
A person who suffers a personal injury sometimes brings a claim in tort and sometimes
brings a claim for consequential damages for breach of warranty (recall Schlenz v. John
Deere in Chapter 17 Problem 9). But if the only injury is to the goods themselves, can the
claim be brought in tort? The states are split. In National Union Fire Ins. Co. of
Pittsburgh, Pa. v. Pratt and Whitney Canada, Inc., 815 P.2d 601 (Nev. 1991), the Nevada
Supreme Court stated:
In a well-reasoned case, a unanimous United States Supreme Court expressed
what is essentially the basis for our ruling in the instant case. The factual predicate
for the court's decision in East River S.S. Corp. v. Transamerica Delaval, 476
U.S. 858 (1985), involved a defective first-stage steam reversing ring within one
of the ship's turbines that had nearly disintegrated. The defective component
damaged the turbine. Thus, although the ship itself was not damaged, property
other than the defective component was damaged. The court denied liability,
stating:
When a product injures only itself the reasons for imposing a tort duty are
weak and those for leaving the party to its contractual remedies are strong.
The tort concern with safety is reduced when an injury is only to the
product itself. When a person is injured, the "cost of an injury and the loss
of time or health may be an overwhelming misfortune," and one the person
is not prepared to meet.
Query: Why isn’t the decision of the U.S. Supreme Court mandatory authority that the
states must follow? In some jurisdictions, the matter is addressed by statute. See, e.g.,
RCW 7.72.030.
18.3. Accrual -- What event starts it running? Under § 2-725(1), an action must be
commenced within four years after the cause of action has accrued. Section § 2-725(2) provides
that “a cause of action accrues when the breach occurs.” When does the breach occur? That
depends upon the type of claim involved. You may recall that in tort, the cause of action
generally accrues when the wrong is or should have been discovered. Warranty law, however,
does not necessarily follow that rule.
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