Highway Sales, Inc. v. Blue Bird Corp., No. 07-3225.
on July 31, 2003, plaintiffs purchased a Blue Bird Wanderlodge RV. From that date until July 2, 2004, the RV suffered from numerous problems. The RV underwent numerous repairs, but continued experiencing difficulties. On July 2, 2004, plaintiffs brought the RV back and sent a July 8, 2004, letter to Blue Bird stating, “I have run out of patience, confidence, and trust that the problems can be fixed in a reasonable time . . . This coach simply needs to be permanently recalled until major corrections are made. . . . I’m not interested in further retrofits, patches, or excuses. I will never take this coach back.”
Blue Bird refused to refund plaintiffs’ money, and plaintiffs filed suit on July 15, 2004, asserting several causes of action, including breach of express warranty, which has a one-year statute of limitations under Minnesota law. Blue Bird moved for summary judgment on the breach of express warranty claim, arguing that the cause of action accrued on July 8, 2004. The trial court agreed and granted Blue Bird summary judgment.
On appeal, the Eighth Circuit Court of Appeals noted that the warranty at issue extended to future performance and, therefore, accrued only when plaintiffs discovered or should have discovered Blue Bird’s refusal or inability to stand behind the warranty. The court held that the July 8, 2004, was insufficient as a matter of law to show that plaintiffs believed the RV was beyond repair. Accordingly, the court reversed and remanded the case back to the trial court.
