On March 16, 2011, an eight person federal court jury returned a unanimous verdict in favor of Yamaha Golf-Car Company and against Swan Lake Holdings LLC on a product performance case involving a fleet of Yamaha G22 golf cars. The lawsuit arose out of Swan Lake’s purchase of 110 golf cars in March 2006. Plaintiff claimed that shortly after purchase, the golf cars experienced premature battery failure. Plaintiff claimed that the electrical charging system on the golf cars was defectively designed. Plaintiff sought damages under theories of breach of express warranty and breach of implied warranty of fitness for a particular purpose. Plaintiff also argued that it was entitled to revoke acceptance of its entire fleet of Yamaha vehicles.
Yamaha defended the product and asserted that any issues Swan Lake was experiencing were solely attributed to the addition of a ProLink GPS system, which was not original equipment and excluded under the warranty.