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III. Breach of Warranty

While the Alaska court has not been called upon to adopt the warranty of habitability, it is likely the court will apply the warranty of habitability to the sale of new homes. The court has spoken approvingly of the implied warranty of habitability in several cases. Stormont v. Astoria Ltd., 889 P.2d 1059, 1063 n.5 (Alaska 1995); Cousineau v. Walker, 613 P.2d 608, 614 (Alaska 1980); see also Alaska Pacific Assur. Co. v. Collins, 794 P.2d 936, 939 (Alaska 1990)(trial court applied warranty of habitability).

The Uniform Commercial Code (UCC) creates warranties when there is a sale of goods, such as building supplies and components. In Alaska, the UCC also applies to mobile homes. Morrow v. New Moon Homes, Inc., 548 P.2d 279, 286-87 (Alaska 1976). Breach of warranty claims for sale of goods are governed by Alaska's Uniform Commercial Code. See Alaska Statutes ch. 45.02. Breach of an express warranty requires proof of the existence of the warranty, breach, loss proximately caused by breach, and that the failure to perform in accordance with warranty terms. Universal Motors, Inc. v. Waldrock, 719 P.2d 254 (Alaska 1986). Alaska also recognizes the implied warranty of merchantability and the warranty of fitness for intended purpose. Damages will be reduced based on the plaintiff's comparative negligence.