The respondent leased a BMW and installed extensive aftermarket modifications.
The airbags deployed without a collision, and BMW refused warranty coverage, citing the modifications.
The trial judge found BMW liable for breach of warranty, concluding the exclusion clause was ambiguous.
On appeal, the Divisional Court allowed the appeal and dismissed the action.
The majority held that the trial judge erred in failing to require the respondent to prove the defect was not caused by the modifications, and found the exclusion clause unambiguously excluded coverage for modifications that may result in damage to original components.
