Cases—Privity—Buyer can’t recover economic lossses against non-party manufacturer

A buyer who claimed breach of warranty damages against the manufacturer of powdered milk saw its claim founder on the privity requirement of New York’s version of UCC § 2-313.

The Egyptian buyer purchased 175 metric tons of powdered milk from two firms, Comtrade and Berkshire.  The milk was manufactured by Agri-Mark.  The milk when delivered was improperly packaged and breached certain express and implied warranties. The buyer sued both the sellers and Agri-Mark, but Judge George B. Daniels held that the warranty claims against Agri-Mark failed. The buyer could not allege privity with Agri-Mark, and there were no personal injuries, so Agri-Mark was entitled to summary judgment.  Inter Impex S.A.E. v. Comtrade Corp., 2004 U.S. Dist. LEXIS 24431 (S.D.N.Y. Dec. 2, 2004).