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Tyco Electronics Corp. v. Illinois Tool Works, Inc.

Citations: 895 N.E.2d 976; 384 Ill. App. 3d 830; 324 Ill. Dec. 261; 2008 Ill. App. LEXIS 870Docket: 1-07-3539

Court: Appellate Court of Illinois; September 2, 2008; Illinois; State Appellate Court

Narrative Opinion Summary

In this case, Tyco Electronics Corporation sued Illinois Tool Works (ITW) for breach of contract and warranties after ITW's surge protection components failed, causing Tyco to suffer significant financial damages. Tyco supplied these components for Motorola's cable access units, which failed after installation, leading to a costly settlement with Motorola. Tyco alleged that ITW's products were defective, while ITW countered that the failures were due to environmental conditions and specification issues. The jury awarded Tyco $2 million, acknowledging the breach by ITW. Tyco appealed, seeking a retrial focused solely on damages, arguing procedural errors and insufficient damages. The court evaluated claims regarding the admissibility of expert testimony and the collateral source rule, ultimately finding no violation. The court also determined that the jury's damages award was not against the manifest weight of the evidence and that liability and damages were too intertwined to warrant a separate damages retrial. The judgment of the circuit court, thus, was upheld, with no new trial granted on damages alone.

Legal Issues Addressed

Breach of Contract and Warranties

Application: The jury found that ITW breached its contract and warranties with Tyco, resulting in the awarding of $2 million in damages.

Reasoning: The jury found in favor of Tyco, awarding $2 million and determining that ITW had breached its contract and warranties, confirming Tyco's damages.

Collateral Source Rule

Application: Tyco argued that Sheets' reliance on an auditor's report from Tyco's insurer violated the collateral source rule, but the court found Sheets' testimony compliant with the rule.

Reasoning: The collateral source rule, as established by the Illinois Supreme Court, restricts juries from hearing about collateral income, specifically preventing defendants from presenting evidence that a plaintiff's losses were compensated by insurance.

Damages-Only Retrial

Application: The court denied Tyco a new trial solely on damages, finding the issues of liability and damages too interconnected for a separate retrial.

Reasoning: In the current case, the court concluded that liability and damages were interconnected due to multiple warranty breaches resulting in differing damages. Consequently, the request for a new trial on damages alone was denied.

Doctrine of Substantive Inadmissibility

Application: Tyco claimed Sheets' testimony should be excluded under this doctrine, but failed to identify any applicable rule for exclusion, and the court admitted the evidence.

Reasoning: Tyco argued that Sheets' testimony should have been excluded under the 'doctrine of substantive inadmissibility,' which prohibits the introduction of evidence that is excluded by another rule of law.

Manifest Weight of the Evidence

Application: Tyco argued that the $2 million verdict was against the manifest weight of the evidence, but the court disagreed, affirming the jury's decision.

Reasoning: Regarding Tyco's motion for a new trial based on damages, Tyco contended that a $2 million verdict did not align with the expert damage calculations of $9.1 million and $4.7 million, arguing it was against the manifest weight of the evidence.