Dual-Temp of Ill., Inc. v. Hench Control, Inc., No. 15-2659 (7th Cir. 2016)
Annotate this CaseDual‐Temp installs refrigeration systems. A crucial component of such systems is the refrigeration control system (RCS), which regulates temperature, humidity, and ammonia levels and controls compressors and condensers. The RCS must maintain communication with the rest of the system to function properly. In 2006, Home Run Inn expanded its pizza manufacturing facility. Its general contractor, Milord, subcontracted with Dual‐Temp to update Home Run’s refrigeration system. Dual‐Temp solicited bids to design an RCS for the system and accepted Hench’s bid. The Hench RCS components were shipped to Dual‐Temp and installed by Dual‐Temp’s affiliate, Spur Electric. Problems began immediately. In April 2008, Milord demanded that Dual‐Temp replace the Hench RCS. Dual‐Temp paid Select $113,500 to remove the Hench RCS and to design, build, and install a replacement RCS; the new Select RCS has been operating and communicating properly since installation. Dual‐Temp filed suit, relying on circumstantial evidence that defendants supplied a defective RCS. The Seventh Circuit affirmed an award of damages and attorneys’ fees to Dual-Temp. Even if the Hench RCS operated properly for some time after startup, there was sufficient circumstantial evidence for a reasonable factfinder to conclude that the communication failures were caused by a defect in the Hench RCS.
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