Johnson v. Mobil Oil Corp

415 F.Supp. 264 (E.D. Mich. 1976)

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Nature of the Case

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Facts

Johnson (P) sued Mobil (D) for losses suffered when the service station he was operating under a retail dealer contract was destroyed by fire. P alleges that the fire was caused by events following D’s delivery of gas containing water. P seeks to recover for the loss of inventory and other consequential damages. D moved for a partial summary judgment to dismiss the claim for consequential damages. This was based on a clause in the retail dealer contract that gave D immunity from such damages. D seeks to limit the recovery to P to difference money damages under 2-714(2); the difference between the value of the goods accepted and the value they should have been as warranted unless special circumstances show proximate damages of a different amount. D relies on 2-719(3) for the premise that consequential damages may be limited or excluded unless limitation of exclusion is unconscionable and wherein limitation of damages for a commercial loss is not prima facie unconscionable. P contends the clause excluding consequential damages is unconscionable.