United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

____________ FILED July 11, 2024 No. 23-10635 Lyle W. Cayce ____________ Clerk John Craig First, Individually, also known as Craig First,

Plaintiff—Appellant,

versus Rolling Plains Implement Company, Incorporated; AGCO Corporation; AGCO Finance, L.L.C.; AGCO Service, a Subsidiary of AGCO Corporation,

Defendants—Appellees. ______________________________

Appeal from the United States District Court for the Northern District of Texas USDC No. 7:21-CV-6 ______________________________ Before Higginbotham, Stewart, and Higginson, Circuit Judges. Patrick E. Higginbotham, Circuit Judge: Defendant Rolling Plains sold an agricultural combine manufactured by AGCO Corporation to John Craig First. Asserting that he was misled as to the combine’s quality and condition, First filed suit. We VACATE and REMAND in part and AFFIRM in part. Case: 23-10635 Document: 105-1 Page: 2 Date Filed: 07/11/2024

I. A. Defendant AGCO Corporation manufactures agricultural combines used in hay and grain fields. In 2015 Defendant Rolling Plains, an authorized reseller of AGCO Corporation products, approached First about purchasing a combine. Its employee Jack Handley told First that, as the Combine was part of AGCO Corporation’s Certified Pre-Owned Program, it was “vigorously inspected” and “Darned Near Good As New,” that the Combine had roughly 400 hours on it, and had “never been to the field.” Unbeknownst to First, this was false—the Combine was not Certified Pre- Owned and had been used for over 1,200 hours. Handley also told First the Combine was covered by a Protection Plan, provided by Defendant Wesco and administered by Defendant AMT, until April 13, 2017. The Protection Plan reiterated Handley’s representations about the Combine; its first page stated that the Combine had 438 “current engine hours.” Relying on Handley’s representations, First purchased the Combine in the spring of 2016. Defendant AGCO Finance financed the purchase. Almost immediately around Memorial Day weekend of 2016, First experienced problems with the Combine’s computer, sieves, and rotor gearbox. Believing he bought a “lemon,” First sought technical assistance from Rolling Plains. When the problems continued into 2019, First turned to Butler Machinery, a third-party repair shop. Butler informed First that the Combine had an extensive repair history and over 900 hours—far eclipsing what Handley had stated. First then turned to the courts. Case: 23-10635 Document: 105-1 Page: 3 Date Filed: 07/11/2024

B. On September 17, 2020, First sued AGCO Corporation, AGCO Service, AGCO Finance, AmTrust, Wesco, AMT, and Rolling Plains in the District Court of Oklahoma County. Defendants removed to federal court in Oklahoma and filed motions to dismiss. On January 26, 2021, the federal district court granted the motions without prejudice and transferred the case to the Northern District of Texas. After amending his complaint, First asserted state law claims of actual and constructive fraud, breach of the warranty of description, and failure of essential purpose. Defendants filed a consolidated motion to dismiss. The district court g