CNH Industrial America LLC v. Jones Lang LaSalle Americas, Inc., No. 16-3800 (7th Cir. 2018)Annotate this Case
CNH, which manufactures “New Holland” brand farming and construction machinery, hired the real estate services firm, JLL, to manage a corporate re-branding program that involved the replacement of signage more than 1,400 North American dealerships. The vinyl used in the new signs was defective, necessitating the re-manufacture and replacement of virtually all of the installed signs. After the vinyl manufacturer repudiated its commitment to replace, at its own cost, the defective signs, CNH sued, alleging that JLL had failed to perform adequate quality control in the manufacturing of the signs, failed to negotiate the best possible warranty on the vinyl and the signs, and failed to properly document and manage the warranties. The district court found that CNH had suffered damages of $5,482,735 but reduced JLL’s liability to $3,026.361.60—the sum CNH paid to JLL in project management fees—plus such other amounts JLL might recover from third parties (the vinyl manufacturer and the sign fabricators) in the future. The Seventh Circuit affirmed. The district court’s findings were supported by the evidence and make clear that JLL’s own failures with respect to quality control in the manufacturing process and with respect to the vinyl warranty made the defective-sign problem much worse for CNH than it otherwise would have been.