Hollybrook Cottonseed Processing LLC v. Carver, Inc., No. 14-30054 (5th Cir. 2014)
Annotate this CaseHollybrook contracted with Carver for cotton processing equipment as part of its operation of a cotton mill. After the equipment repeatedly broke down, Hollybrook filed suit against Carver for breach of contract and redhibition. Hollybrook also sued Carver's primary insurer (Sentry) and its excess insurer (American). Defendants removed to federal court and Hollybrook settled its claims against Carver and Sentry. Hollybrook proceeded against American. On appeal, the court concluded that there was no error in the district court's order granting a new trial where the district court did not abuse its discretion in determining that the submission of the prejudicial information at issue was not harmless, or its determination that the jury's damage award was covered under the applicable insurance policy. However, the court concluded that the district court incorrectly determined that Hollybrook's attorney's fees were not covered by the policy. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings.
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