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Tuesday, February 22, 2005

Ind. Decisions - One today from Supreme Court

Hyundai Motor America, Inc. v. Sandra Goodin (2/22/05 IndSCt) [Contracts]
Boehm, Justice

We hold that a consumer may sue a manufacturer for economic loss based on breach of the implied warranty of merchantability even if the consumer purchased the product from an intermediary in the distribution chain. There is no requirement of “vertical” privity for such a claim. * * *

For the reasons given above we conclude that Indiana law does not require vertical privity between a consumer and a manufacturer as a condition to a claim by the consumer against the manufacturer for breach of the manufacturer’s implied warranty of merchantability.

Conclusion. The judgment of the trial court is affirmed.
Shepard, C.J., and Dickson, Sullivan, and Rucker, JJ. concur.

Posted by Marcia Oddi on February 22, 2005 02:08 PM
Posted to Ind. Sup.Ct. Decisions