Newco engineering developed a new interior coating for water wells that can extend the life of an existing well by 50 percent. Many wells are working 40-50 years after installation. Newco sales provided sales literature to the City of Trevor ( customer) that showed performance data for each resin as applied to specific well types. The City of Trevor had 20 wells lined with a high density polyethylene. The City of Trevor was very impressed and entered into a contract for Newco to treat 20 of their existing wells with resin x. The cost of the treatment was 25,000 per well. The contract provided a limited performance warranty of 3 years. The contract provided the exclusive remedy is repair and excludes consequential damages. 5 years later all the wells showed early signs of failure and Trevor contacted Newco re a warranty claim based on the statement that the coating can extend the life of an existing well by 50 percent.

You are the engineering manager for Newco and you have arranged for mediation with Trevor to prevent litigation.

Briefly state your case to the mediator. Professor Fentress will be the mediator.