Insurance Claim – Property Damage

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7^th Circuit Court of Appeals

Case Name: Berry Plastics Corporation v. Illinois National Insurance Company

Case No.: 17-1815

Officials: FLAUM, KANNE, and ROVNER, Circuit Judges.

Focus: Insurance Claim – Property Damage

Berry Plastics Corporation filed this action seeking indemnity from its excess insurer, Illinois National Insurance Company, for a multi-million dollar damage award Berry was ordered to pay to a disappointed former customer. The insurance policy covers damages that Berry is required to pay “because of … Property Damage.” R. 42-4 at 11. Berry had supplied defective laminate material to the customer, which incorporated that material into containers that subsequently failed. A jury ordered Berry to compensate the customer for the profits it could have expected to earn on future sales had the failure caused by Berry’s defective material not caused buyers to turn away from the containers. Berry contends that it has been held liable for its customer’s lost profits because of the property damage its defective component caused to the customer’s containers. Although we agree with Berry that some portion of the lost profits theoretically might be attributable to property damage, Berry has neither undertaken to make that showing nor demanded the opportunity to do so. For that reason we affirm the district court’s entry of summary judgment in favor of Illinois National.

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.