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Harris Moran Seed Co., Inc. v. Phillips

Court of Civil Appeals of Alabama (2006) | 949 So. 2d 916; 2006 WL 1719936

4 min read

TL;DR: Farmers sued a remote seed manufacturer for a failed crop. The court found the farmers were third-party beneficiaries of the manufacturer-dealer contract and could enforce an express warranty, but were also bound by that contract's clause limiting their remedy to the seed's purchase price, not lost profits.

Legal Significance: Establishes that a remote purchaser can be an intended third-party beneficiary of a manufacturer's express warranty, but in claiming the contract's benefits, the purchaser also assumes its burdens, including valid limitations on consequential damages, which are not unconscionable in a commercial agricultural context.