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In Agredano v. U.S. (Feb. 17, 2010), the Federal Circuit reversed the Court of Federal Claims decision that Customs and Border Protection breached an implied-in-fact warranty when it sold a car at auction containing concealed marijuana, drugs that ultimately resulted in the purchaser spending a year in a Mexican prison. The Federal Circuit held there was no implied-in-fact warranty that the car did not contain contraband, finding there was no meeting of the minds required to form such a warranty because Customs' regulatory duty to remove contraband from the forfeited vehicle did not create a contractual obligation and the agency had expressly disclaimed any and all warranties at the auction.
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Frederick (Rick) W. Claybrook Jr.
Partner – Washington, D.C.
Phone: +1 202.624.2695