Idaho Power Company v. Westinghouse Electric Corporation

We affirm the dismissal by summary judgment of Idaho Power Company’s damage suit against Westinghouse Electric. The action alleged that Westinghouse was liable on theories of warranty, negligence, and strict liability for damages caused by a defective voltage regulator which it manufactured and sold to Idaho Power.

On appeal, Idaho Power argues that (1) the district court erred in concluding that limitations of liability in the Westinghouse sales form were part of the contract between the parties, and that (2) even if they were part of the contract, Westinghouse could not disclaim strict liability.

FACTS

On January 12, 1973, Idaho Power sent an inquiry to Westinghouse asking its price for a three-phase voltage regulator. Westinghouse responded on January 25 with a price quotation which provided that it was subject to the terms and conditions on the back of the form.

The terms limited Westinghouse’s liability, providing that it would not be liable “for special, indirect, incidental, or consequential damages,” and that its liability, “whether in contract, in tort, under any warranty, or otherwise, . . . shall not exceed the price of the product or part on which such liability is…