Facts
In January 1976, Kilintra AG purchased two parcels of building land from the heirs S. for a lump sum of 3 million Swiss francs. The purchase contract excluded the sellers' warranty liability for defects in the purchased objects. During excavation work in March 1977, oil contamination of the soil was discovered, which was traced back to a defective connecting line to former greenhouses. The buyer, Kilintra AG, then sued the sellers for damages for the remediation costs.
The District Court of Meilen dismissed the claim, as the warranty had been contractually excluded and there was no room for non-contractual liability under Art. 58 of the Swiss Code of Obligations (OR). The Cantonal Court of Zurich overturned this decision and found that the defendants were liable for the reduced value of the purchased property and the remediation costs. The defendants appealed against this preliminary judgment.
Considerations
The Federal Supreme Court held that the contractual clause excluding the warranty liability for material defects was generally effective. In interpreting this clause, it must be examined in good faith what meaning should be attributed to it according to the specific circumstances and the prevailing views of fair-minded people.
In the present case, the oil damage that occurred was not completely outside what the buyer could reasonably have expected. Although the parties were unaware of the…