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Volvo Wins Bid to Dismiss Implied Warranty Claim

(CN) - A federal judge in Chicago dismissed a Nebraska insurer's claim that Volvo Trucks North America failed to honor an implied warranty for a truck that caught fire.

U.S. District Judge Joan Humphrey Lefkow granted Volvo's motion to dismiss Great West Casualty's claim for breach of implied warranty on a commercial truck bought by its insured, Chicago Logistics.

Lefkow said the language on Volvo's truck and engine warranties "effectively disclaims the implied warranties of merchantability and fitness for a particular purpose."

The judge rejected Great West's argument that the disclaimer on the truck warranty wasn't conspicuous enough because it wasn't in bold type or located at the top of the page.

"Great West has presented no case law in support of the proposition that a warranty disclaimer is made less conspicuous if it is not located at the top of the page," Lefkow wrote.

The judge further noted that the engine warranty disclaimer - which instructs readers to "see reverse side for important limitations and exclusions" - is "conspicuous and adequately signals the reader to inspect the reverse side for a disclaimer."

Lefkow also rejected Great West's request for discovery to determine whether the warranties were unconscionable, saying precedent "requires more than Great West's mere speculation that discovery might reveal grounds for such allegations."

Great West maintains claims against Volvo for product liability, negligence and breach of express warranty.

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