Western Recreational Vehicles, Inc. v. Swift Adhesives, Inc.

Opinion by Judge Hall.

In this diversity action for breach of warranty, defendant Swift Adhesives, Inc. appeals the district court’s judgment and plaintiff Western Recreational Vehicles, Inc. cross-appeals the district court’s damage award. We conclude the district court erred by not applying the relevant statute of limitations and by not requiring Swift to demonstrate how much, if any, of Western’s lost-profit damages to allocate to the limitations period. Accordingly, we affirm in part, reverse in part, and remand for further proceedings.

I.

Western Recreational Vehicles, Inc. manufactures travel trailers, truck campers, and fifth-wheel trailers (“RVs”), the production of which requires bonding exterior sidewalls to interior RV components. In 1979, Western began to use a roll-coater lamination process, through which it could bond sidewalls with adhesive instead of staples. At that time, Western asked Swift Adhesives, Inc. to recommend a glue for the lamination process. *1549 After testing various products with the roll-coater machinery and aluminum sidewalls, Swift advised Western to use Adhesive #47344 (“Adhesive”). Western agreed and soon became a regular customer, using…