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NY Drilling Inc. v. TJM Inc. LLC

Implied Warrranty Disclaimers Overcome Suboptimal Placement; Beneficiary Status Rejected

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MEMORANDUM & ORDER Plaintiff NY Drilling, Inc. purchased two “hydraulic crawler drilling rigs” from defendant TJM, Inc. pursuant to written contracts of sale. Plaintiff does not say what use it intended for the rigs, but does allege that they malfunctioned multiple times and had to be taken out of service. Invoking the Court’s diversity jurisdiction, NY Drilling alleges that TJM breached the implied warranties of merchantability and fitness by its sale of defective rigs. Defendant now moves to dismiss under Federal Rule of Civil Procedure 12(b)(6), on the basis that the parties’ written contracts explicitly disclaim those warranties. For the reasons set forth below, I GRANT Defendant’s motion to dismiss. I. Background A. Factual Background The following factual allegations are taken from Plaintiff’s second amended complaint (“SAC”) and are assumed to be true for purposes of this Order. There are three primary players in this story: HD Engineering manufactured the drills in question. SAC 6, ECF No. 22.1 HDE is based in Hong Kong and is not a party to this action. Defendant TJM, Inc. is located in Pennsylvania and is the exclusive distributor of HDE’s drilling rigs in the United States. Id.

2, 23.2 When HDE sold the rigs at issue to TJM, the purchase agreements accompanying the rigs contained a one-year “warranty agreement” between HDE and TJM (that is, between manufacturer and distributor). Id.

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