Nationwide Agribusiness Insurance Company v. AGCO Corporation d/b/a GSI Group, LLC
1:22-cv-01047
| C.D. Ill. | Jun 24, 2025Background
- Nationwide Agribusiness Insurance Company paid its insured (Prairie Central Cooperative, “PCC”) nearly $2.5 million after a grain bin in Chenoa, Illinois, was damaged by a windstorm; wind speeds were allegedly below the bin’s 105 mph design specification.
- Nationwide (subrogated to PCC’s rights) sued AGCO (d/b/a GSI Group, manufacturer), Clear Creek (engineering), and Koehl Enterprises (construction contractor), alleging defective design/construction. Koehl also brought third-party claims against Lowecon (installer).
- The complaint alleges: negligent misrepresentation against Clear Creek, breach of contract against GSI, and breach of warranty against Koehl.
- GSI and Koehl moved for summary judgment; Lowecon moved for summary judgment against Koehl’s third-party claims.
- Settlement between Nationwide and Clear Creek is imminent but not finalized; no dispositive motion was filed as to Clear Creek, so that claim remains live.
- The court’s resolution turned on privity, contract scope, alleged warranties, industry practices, and whether disputed material facts preclude summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1. Breach of contract (GSI) | Bin was warranted to withstand 105 mph wind; | No contract/privity between PCC or Nationwide and GSI; did not construct bin | No privity or contract; summary judgment for GSI |
| 2. Breach of warranty (Koehl) | Koehl impliedly warranted proper installation | No express/implied warranty; wind specs were not contractual | No express warranty; triable fact on implied warranty |
| 3. Third-party contract breach (Lowecon) | Lowecon failed to follow industry practices/manual | Not responsible for missing parts; followed scope of work | Triable fact over industry practices/manual requirements |
| 4. Third-party warranty (Lowecon) | Lowecon did not erect bin in workmanlike manner | Work limited to parts provided; no warranty breach | Triable fact on warranty of workmanship |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (articulates summary judgment standard)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S. 1986) (genuine dispute of material fact standard for summary judgment)
- Hernandez v. Ill. Inst. of Tech., 63 F.4th 661 (7th Cir. 2023) (Illinois contract breach elements)
- Maldonado v. Creative Woodworking Concepts, Inc., 797 N.E.2d 662 (Ill. App. Ct. 2003) (implied warranty of fitness for a particular purpose standard)