Datamatic, Inc. v. International Business Machines Corp.

ALVIN B. RUBIN, Circuit Judge:

Invoking the Louisiana civil-law doctrine of redhibition, La.Civ.Code art. 2520, a purchaser of second-hand computer equipment sued the computer manufacturer to recover purely economic losses resulting from alleged defects in the equipment. The manufacturer defended on the ground that its *460sales contracts with the original purchasers of the computer equipment included warranty limitations restricting its liability. The district court granted summary judgment for the manufacturer. While the Louisiana cases hold that a buyer who purchases a used product from one who…