Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 352-S.F.No. 565 
           An act relating to civil actions; regulating recovery 
          for economic loss arising from the sales of goods; 
          amending Minnesota Statutes 1990, section 336.2-725; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 604. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 336.2-725, is 
amended to read: 
     336.2-725 [STATUTE OF LIMITATIONS IN CONTRACTS FOR SALE.] 
     (1) An action for breach of any contract for sale must be 
commenced within four years after the cause of action has 
accrued.  By the original agreement the parties may reduce the 
period of limitation to not less than one year but may not 
extend it.  
     (2) A cause of action accrues when the breach occurs, 
regardless of the aggrieved party's lack of knowledge of the 
breach.  A breach of warranty occurs when tender of delivery is 
made, except that where a warranty explicitly extends to future 
performance of the goods and discovery of the breach must await 
the time of such performance the cause of action accrues when 
the breach is or should have been discovered.  
     (3) Where an action commenced within the time limited by 
subsection (1) is so terminated as to leave available a remedy 
by another action for the same breach such other action may be 
commenced after the expiration of the time limited and within 
six months after the termination of the first action unless the 
termination resulted from voluntary discontinuance or from 
dismissal for failure or neglect to prosecute.  
    (4) This section does not alter the law on tolling of the 
statute of limitations, nor does it apply to causes of action 
which have accrued before this chapter becomes effective.  
    Nor does This section does not apply to actions for the 
breach of any contract for sale of a grain storage structure 
that is an improvement to real property, which.  These actions 
shall be are subject only to the statute of limitations set 
forth in section 541.051. 
    This section does not apply to claims against sellers of 
goods for damages to property caused by the goods where the 
property that is damaged is not the goods and the sale is not a 
sale between parties who are each merchants in goods of the kind.
    Sec. 2.  [604.10] [ECONOMIC LOSS ARISING FROM THE SALE OF 
GOODS.] 
    (a) Economic loss that arises from a sale of goods that is 
due to damage to tangible property other than the goods sold may 
be recovered in tort as well as in contract, but economic loss 
that arises from a sale of goods between parties who are each 
merchants in goods of the kind is not recoverable in tort. 
    (b) Economic loss that arises from a sale of goods, between 
merchants, that is not due to damage to tangible property other 
than the goods sold may not be recovered in tort. 
    (c) The economic loss recoverable in tort under this 
section does not include economic loss due to damage to the 
goods themselves. 
    Presented to the governor May 31, 1991 
    Signed by the governor June 4, 1991, 8:35 p.m.