In a case involving foundation
repairs to a residence, the Texas Supreme Court addressed the question of
whether the implied warranty for good and workmanlike repair of tangible goods
or property can be disclaimed or superseded.
The Court held that the implied warranty cannot be disclaimed, but it
can be superseded by the parties. Gonzalez
v. Southwest Olshan Foundation Repair Company, LLC,
400 S.W. 3d 52 (Tex. 2013).
In Gonzalez, a homeowner (“Gonzalez”) hired Olshan Foundation Repair
Co., LLC (“Olshan”) to repair the foundation of their home. The repair contract (the “Contract”) included
two warranty provisions. First, the Contract stated Olshan would use the Cable Lock system of foundation repair and
would adjust the foundation for the life of the home. Second, it required Olshan to perform all of the necessary work in a good and workmanlike manner. Olshan repaired the foundation, but Gonzalez
continued to experience foundation problems.
Gonzalez ultimately sued Olshan
for, among other things, breach of express warranty, breach of the common law
warranty of good and workmanlike repair, and DTPA violations. The jury found that Olshan did breach the
implied warranty of good and workmanlike repair and committed DTPA violations,
but did not breach any express warranty.
The Court of Appeals reversed this holding on the grounds that the
implied-warranty and DTPA claims were barred by the two-year statute of
limitations. The case then proceeded to
the Texas Supreme Court.
Olshan argued that its express
warranty superseded any implied warranty of good and workmanlike repair. Therefore, because the jury held Olshan did
not breach any express warranty, liability was precluded on Gonzalez’s implied-warranty
claims. The Texas Supreme Court agreed. The
Court stated that Texas law recognizes an implied warranty to repair or modify
existing tangible goods or property in a good and workmanlike manner, and that
such implied warranty cannot be disclaimed or waived. The Court then analogized this implied
warranty with the implied warranty of good workmanship related to new home
construction. See Melody Home Manufacturing Co. v. Barnes,
741 S.W.2d 349, 354 (Tex. 1984). The Court
held that the implied warranty of good and workmanlike repair may be superseded
if the parties’ agreement sufficiently describes the manner, performance or
quality of the services to be provided.
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