DNJ, Inc., purchased a forage chopper from Burks Tractor Company, Inc. The chopper was made by Krone North America, Inc., and was the subject of two warranties: the New equipment Limited Warranty and the Krone North America Crown Guarantee. On October 15, 2012, the chopper was destroyed by fire. Western Community Insurance Co., (Western) DNJ’s insurer paid it $440,779 for the loss. Western then brought a subrogation action in which it advanced theories of express warranties found in the two warranties provided by Krone, breach of the covenant of good faith, and violations of the Idaho Consumer Protection Act (ICPA). The court dismissed Western’s ICPA claims against Krone and Burks, holding that that they were prohibited under that act.
Although all parties’ pleadings identified Burks as the chopper’s owner when it was sold to DNJ, shortly before trial Krone revealed that the chopper actually had been owned by Krone. Western filed an amended complaint that reflected this new information. In response, Burks filed an answer that included several new affirmative defenses. Western filed a motion to strike the new defenses. The court denied the motion, finding that the amendments did not prejudice Western.
At trial, a jury found for Krone on all counts. Afterwards, Western filed motions for reconsideration and a new trial. The court denied both motions. On appeal, the court held that the trial court erred in dismissing Western’s claim and in relying on a case that was markedly different than the current action. It did agree with the lower court’s denial of the motion for a new trial.
The court found further that the lower court did not abuse its discretion by denying Western’s motion to strike and permitting Burks to assert new legal and factual defense before trial after it was discovered that Krone, rather than Burks, actually owned the chopper. The higher court found no errors in any of the other rulings made by the lower court, including its decision to enter a directed verdict in Burks’ favor. The judgment of the lower court was affirmed and Burks and Krone were awarded attorney fees and costs.
Western Community Insurance Co., Vs. Burks Tractor Co. Inc., Supreme Court of Idaho. No. 44372. Filed September 6, 2018. Affirmed.
