A federal appellate court has set aside a lower court and ruled in favor of a commercial valve distributor in litigation with its insurer, as the company was not given a "full and fair" opportunity to present its case to the lower court.
Granite City, Illinois-based Coyle Mechanical Supply Inc. was sued in the Illinois state court by an energy company in connection with the alleged failed commercial valves it had sold and accused of breach of contract, breach of the implied warranties of merchantability and breach of the warranty. , according to the Tuesday decision of the 7th American Circuit Court of Appeals in Chicago in Federated Mutual Insurance Co. v.Coyle Mechanical Supply, Inc.
Coyle's insurer, Owatonna, Minnesota-based Federated, filed a lawsuit in the U.S. District Court in Benton, Illinois, claiming that it had no obligation to defend or injure Coyle. .
After Coyle responded to Federated's complaint, Federated moved for them on the submissions, which Coyle opposed.
Coyle later moved to submit supplementary notices which, in its view, showed that the State's judicial review may fall within the Federated's coverage obligations under the decision.
The district court denied Coyle's proposal to file additional notices in the case, and ruled in Federated's favor, the decision said. The verdict was overturned by a unanimous three-judge appellate court.
In granting Federated's proposal in the case, "the court relied on some of the new facts that Coyle had unsuccessfully hoped to introduce through supplementary evidence, while ignoring other facts ̵
Coyle correctly pointed out, the decision said, "that the district court's handling of the case violated both local rules and the Federal Rules of Civil Procedure. " Worse, the court's error deprived Coyle of his right to present substantive factual evidence concerning the central question in the case, "the decision said.
The panel said it was reversing and returning the case" so that Coyle could have a full and fair opportunity to defend himself against the Federated lawsuit. "
Attorneys did not respond to a request for comment.