Articles Posted in US Court of Appeals for the Seventh Circuit

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A newly-constructed multi‐story condominium building suffered water damage, allegedly caused by the painting subcontractor, National, failing to apply an adequate coat of sealant to the exterior. In Illinois state court, the condominium association sued the general contractor, developer, and subcontractors. The defendants tendered the defense to Westfield, National’s insurer, Westfield filed a federal action seeking a declaration that it owed no duty to defend in the underlying action. The district court determined that the complaint triggered Westfield’s duty to defend. The Seventh Circuit affirmed the grant of summary judgment, rejecting an argument that failure to apply an adequate amount of paint cannot be considered an “accident” that would constitute a covered “occurrence” under the policy. Westfield also argued that because the damage is to the building itself, which was a new construction and not an existing structure, the association has not demonstrated that there was property damage that is subject to its policy. The policy defines “occurrence” to include the “continuous or repeated exposure to substantially the same harmful conditions,” so the allegation that National acted negligently was sufficient under Illinois law to constitute an “occurrence.” National’s actions allegedly damaged parts of the building that were outside of the scope of its work, so the complaint alleges potentially covered property damage sufficient to invoke the duty to defend. View "Westfield Insurance Co. v. National Decorating Service, Inc." on Justia Law

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Plaintiffs filed a putative class action against Kolbe & Kolbe Millwork, alleging that Kolbe sold them defective windows that leak and rot. Plaintiffs brought common-law and statutory claims for breach of express and implied warranties, negligent design and manufacturing of the windows, negligent or fraudulent misrepresentations as to the condition of the windows, and unjust enrichment. The district court granted partial summary judgment in Kolbe’s favor on a number of claims, excluded plaintiffs’ experts, denied class certification, and found that plaintiffs’ individual claims could not survive without expert support. The Seventh Circuit affirmed. Plaintiffs forfeited their arguments with respect to their experts’ qualifications under “Daubert.” Individual plaintiffs failed to establish that Kolbe’s alleged misrepresentation somehow caused them loss, given that their builders only used Kolbe windows. Though internal emails, service-request forms, and photos of rotting or leaking windows may suggest problems with Kolbe windows, that evidence did not link the problems to an underlying design defect, as opposed to other, external factors such as construction flaws or climate issues. View "Haley v. Kolbe & Kolbe Millwork Co.," on Justia Law