Terry Martin v. Stanley Smith

¶1 Stanley Smith appeals the trial court’s dismissal of his breach of warranty counterclaim against M & M Technologies Inc. He argues that M & M breached the express warranties in two agreements with him. Specifically, he argues that M & M was the subject of a material adverse claim by the United States Securities and Exchange Commission (SEC) at the time M & M warranted otherwise. He is correct. We reverse.

¶2 This is a commercial dispute between M & M and Smith over a license agreement and an option agreement, both of which are dated April 11, 2007. Prior to the execution of these…