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Fednev Int'l Ltd v. Cont'l Ins. Co., 08-2650

By FindLaw Staff on November 01, 2010 3:33 PM

Dismissal of a vessel carrier's suit for attorney's fees, costs, and expenses incurred in defending suit for damaged steel in transit

Fednev Int'l Ltd v. Cont'l Ins. Co., 08-2650, concerned a challenge to the district court's dismissal of plaintiff's suit for failure to state a claim upon which relief can be granted, in plaintiff vessel carrier's suit for attorney's fees, costs, and expenses incurred in earlier litigation, involving damaged steel in transit from Belgium to Indiana.

In affirming the dismissal, the court held that the district court properly found that, under Illinois law, the American Rule bars plaintiff's breach of contract claim seeking to collect litigation expenses and attorney's, and plaintiff has waived its contention that federal common law permits recovery of attorney's fees for defendant's breach and that it may recover the litigation-related expenses and attorney's fees because defendant acted in bad faith.

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