Hi-Tech Aggregate, LLC, v. Pavestone, LLC, 140 Nev. Adv. Op. 59, (Sept. 19, 2024)

The Nevada Supreme Court established that, in order to demonstrate a breach of the implied warranty of fitness for a particular purpose, the purchaser is not required to show that the seller had actual knowledge of the particular purpose for which the goods were purchased but needs only to demonstrate that the seller had reason to know of the particular purpose. The Court affirmed the ruling of the lower court in favor of the plaintiff-purchaser Pavestone, LLC that defendant-seller Hi-Tech Aggregate, LLC breached the implied warranty of fitness for a particular purpose that was attached to its sale of aggregate to Pavestone. The Supreme Court also reiterated the appropriate application of the economic loss doctrine and reversed the lower court’s decision allowing Pavestone’s noncontractual products liability tort claim due to Pavestone’s failure to sufficiently demonstrate damage to any property besides the defective property itself.