United States Court of Appeals For the Seventh Circuit
A settlement waives implied warranty defenses and counterclaims.
“We affirm the judgment. The district court correctly held that the settlement waived Asia Pulp’s implied-warranty defenses and counterclaim. The fraud defense is mostly barred as well; to the extent it is not, Asia Pulp’s evidence is wholly insufficient to survive summary judgment. Asia Pulp’s remaining defenses—that the notes lacked consideration; that the notes were issued for a “special purpose” and were not intended to be repaid; and that JPMorgan is not a holder in due course—are all meritless. As to damages, the court properly awarded interest at the contractual default rate and attorney’s fees as provided in the notes. Finally, we lack jurisdiction over Asia Pulp’s appeal of the asset-discovery order. Postjudgment orders for the discovery of assets are nonappealable interlocutory orders, and the collateral-order doctrine does not apply.”
Appeals from the United States District Court for the Northern District of Illinois, Holderman, J., Sykes, J.