review from the Iowa Court of Appeals. Appeal from the Iowa
District Court for Clayton County, John J. Bauercamper,
implement dealer seeks further review of a court of appeals
decision partially reversing a district court order granting
it summary judgment. DECISION OF COURT OF APPEALS AFFIRMED IN
PART AND VACATED IN PART; DISTRICT COURT JUDGMENT AFFIRMED.
M. O'Donohoe of Elwood, O'Donohoe, Braun, White,
L.L.P., Charles City, for appellant.
John Arenz, McKenzie R. Hill, and Brenton M. Tunis of
O'Connor & Thomas, P.C., Dubuque, for appellee
Bodensteiner Implement Company.
P. Nelson of Meyer, Lorentzen & Nelson, Decorah, for
appellee Windridge Implements, LLC.
Michael A. McEnroe and Erin P. Lyons of Dutton, Braun, Staack
& Hellman, P.L.C., Waterloo, for appellee ECK &
Richard J. Kirschman of Whitefield & Eddy, P.L.C., Des
Moines, for appellee CNH America, LLC.
independent contractor providing liquid manure disposal
services purchased a used Case IH tractor from a John Deere
implement dealer. When the tractor proved to be a
"lemon, " the contractor brought claims against
multiple parties, including the implement dealer. The trial
court granted all of the defendants' motions for summary
judgment. The contractor appealed and we transferred the case
to the court of appeals.
court of appeals affirmed the district court in all aspects
except with regard to the district court's grant of
summary judgment on the contractor's express warranty
claim against the implement dealer. The implement dealer
filed an application for further review, which we granted.
further review, we exercise our discretion and only review
the court of appeals ruling on the express warranty issues.
On those issues, we find the disclaimers contained in the
purchase agreement negate any express warranties allegedly
made by the implement dealer. Therefore, we affirm the
decision of the court of appeals in part, vacate it in part,
and affirm the judgment of the district court.
Background Facts and Proceedings.
Cannon was an independent contractor affiliated for several
years with D & J Pumping, which provides liquid manure
disposal services to operators of livestock confinement
facilities in northeast Iowa. Cannon's work required a
heavy-duty tractor to haul tanks holding manure off premises
to other premises where he would spread the waste on cropland
as fertilizer. The work is very time sensitive as there are
only brief periods in the spring and fall that are
appropriate for the application.
October 2010, Cannon was using a John Deere 8430 tractor he
had purchased used from Bodensteiner Implement
(Bodensteiner). Bodensteiner is a John Deere dealership that
also deals in used farm equipment from other manufacturers.
The John Deere tractor was not working properly, and Cannon
found himself in need of a tractor. In the past, Cannon had
always purchased John Deere tractors. However, he worked
alongside brothers, Brian and Bruce Mitchell, who used Case
IH tractors, and they spoke favorably of the
brand. Cannon knew the brothers for his whole
life and valued their opinions about tractors.
had also previously consulted with others about Case IH
tractors and had heard favorable comments about the brand,
including their higher horsepower. Cannon decided to contact
Roger Monroe, a salesperson at the Bodensteiner branch in
Clermont, to inquire about available Case IH
tractors. Cannon had worked with Monroe before in
prior purchases, including the purchase of the tractor he
currently owned and was seeking to trade or sell. Cannon
asked Monroe if the dealership had any used Case IH 285
tractors. Monroe was aware Cannon would be using the tractor
for manure-hauling purposes. According to Cannon, Monroe
"knew exactly what [he] needed."
the Clermont branch did not have any "red"
tractors, Monroe was able to find a used Case IH
Magnum 305 tractor at Bodensteiner's Monticello
branch. A Case IH dealer sold this tractor when it
was new to Gansen Pumping, which used it in a similar liquid
manure disposal business. Gansen Pumping traded the tractor
to the Monticello branch. At the time of its original sale,
the tractor came with the manufacturer's warranty. Gansen
Pumping also purchased an extended warranty entitled
"Purchase Protection Plan" (PPP), effective from
November 18, 2008, to April 21, 2013. The PPP covered certain
powertrain repairs during this period and was transferrable.
informed Cannon about the red tractor at the Monticello
branch. According to Cannon, Monroe also told him the tractor
"had a little more horsepower than what [Cannon] had,
about the same hours, [and was a] really good tractor [that]
should work great for [him]." Cannon wanted to confirm
the tractor had a big axle and a big draw bar on it. Monroe
agreed to check whether the tractor had these items and
called the Monticello branch to find out. Monroe told him the
tractor had been used to haul manure already "so it was
all setup and ready to go[;] it was all weighted up [and] had
the big draw bar ready to go." Cannon knew Monroe had
never seen the tractor in question. According to Cannon,
Monroe told him the tractor had been "in the shop"
and "everything [had been] tested out."
admits he told Cannon the tractor was in good condition. In
addition, Monroe spoke with Phil Kluesner, a salesperson at
the Monticello branch who took the Case IH Magnum 305 tractor
in on trade from Gansen Pumping. Monroe relayed to Cannon
that Kluesner said it was a good tractor, had been used
satisfactorily for manure pumping, had passed inspection at
the Monticello dealership, and had been driven around. Cannon
also spoke to Neil, a mechanic at the Clermont branch, about
the Case IH Magnum 305. Neil told Cannon that "[Cannon]
would be happy with the horsepower and [with] what [he] was
getting." Cannon understood Neil was speaking about the
Case IH 305 generically and not about this tractor in
informed Cannon if he was interested in the tractor he could
go to Monticello, or Bodensteiner could truck the tractor up
to Clermont. Bodensteiner was unwilling to transport the
tractor from Monticello to Clermont unless Cannon actually
purchased it and paid the $1000 trucking fee. In return,
Bodensteiner agreed to trade tractors even up with Cannon,
which on paper was a $138, 000 trade. Monroe also told Cannon
the PPP would be included with the purchase. He was not,
however, familiar with the details of the PPP and suggested
Cannon contact a Case IH dealer for more information. Cannon
was in a hurry to get a new tractor, so he agreed to purchase
the tractor without seeing it, inspecting it, or test driving
it. Cannon allegedly told Monroe if it was a good running
tractor and would work for manure pumping he wanted it.
following day, October 6, 2010, Cannon signed the contract to
purchase the tractor. The Case IH Magnum 305 arrived at the
Clermont branch, and according to Monroe, he drove it
approximately a block or block and a half and it drove fine.
Cannon noted, however, that contrary to what Monroe had told
him, the tractor did not have a big enough draw bar, so
Cannon had to order one.
left his John Deere tractor, which he had just traded in, at
Bodensteiner and proceeded to drive the Case IH tractor home.
On the way home, he contacted Windridge Implement
(Windridge), an authorized Case IH dealer, to inquire about
the PPP. He also checked whether the PPP effectively
transferred to him. The ten-mile drive to his residence was
uneventful. Upon arriving at his residence, Cannon proceeded
to hook an empty tank to the tractor and start work for the
day. After a couple of miles, he quickly realized the tractor
did not have sufficient power, which he attributed to the
turbocharger. A subsequent inspection revealed twelve turbo
bolts were broken and rusted. Additionally, that same day,
the nineteenth gear of the tractor went out, and shortly
thereafter, the hydraulic pump exploded. Within a day or two
of taking delivery, Cannon spoke to Monroe about these issues
and asked for a loaner tractor while Windridge repaired the
Case IH. Monroe advised him this was not possible.
the initial issues with the tractor have been repaired and
covered under the PPP. However, within a short period, the
transmission overheated and the brakes failed. This has become a
recurring problem. Although numerous Case IH technicians and
a field service agent attempted to address these issues, no
one has been able to determine the underlying ...