Citation Edit

Lovely v. Burroughs Corp., 165 Mont. 209, 527 P.2d 557 (1974) (full-text).

Factual Background Edit

In a non-jury trial in the district court, plaintiffs were awarded damages of $16,760.82 for losses resulting from the defective operation of electronic accounting equipment supplied by the defendant. Defendant appeals from the judgment. Plaintiffs cross-appeal from the damages awarded.

State Supreme Court Proceedings Edit

The court found that Burroughs had violated the implied warranty of fitness for a particular purpose, since Burroughs had worked closely with the plaintiffs and "that plaintiffs were relying on defendant's judgement in furnishing suitable goods.”[1]

The court also held that, although the plaintiff had retained the computer system for eight months, it had not "accepted" the computer system and its "actions amount to a good faith attempt to permit defendant to remedy the defects. . . .”[2]

The court also found that a clause limiting consequential damages referred only to damages for delays in delivery of the computer equipment.[3] Since the plaintiff’s losses were a result of the failure of the computer equipment to function properly, recovery for the damages due to the computer malfunction was not precluded by the limitation of liability clause.[4]


  1. Id. at 213, 527 P.2d at 560.
  2. Id. at 216, 527 P.2d at 561.
  3. Id. at 219, 527 P.2d at 563.
  4. Id.

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