McCoy v. Iberdrola Renewables, Inc.

July 28, 2014 by Justia

Gamesa contracted with Minnesota-based Outland Renewable Energy to provide maintenance for Gamesa wind turbines. Iberdrola operated Gamesa-made turbines at the Cayuga Wind Farm in Illinois. While servicing a Cayuga urbine, Outland employee McCoy was electrocuted when the turbine unexpectedly reenergized. McCoy filed a personal injury case in state court against Iberdro and Gamesa. The case was removed to federal court on diversity of citizenship grounds. Iberdro impleaded Outland to seek indemnification based on contract and the Illinois Joint Tortfeasor Contribution Act. Outland raised 22 counterclaims: including indemnification; federal and state antitrust claims (Illinois, Minnesota, and Texas law); and other state law claims. Outland unsuccessfully sought a preliminary injunction against Gamesa’s allegedly unfair competitive practices. The district court dismissed all but one of Outland’s counterclaims. Only the indemnification claim survived. McCoy, Gamesa, and Outland settled. The district court accepted the settlement, protecting Outland and Gamesa from further contribution claims under the Illinois JTCA; all claims arising from the accident among those parties were dismissed. Only the original personal injury dispute between McCoy and Iberdrola remained, but the court had not issued a final judgment. About six months after the dismissal, Outland sought leave to amend, arguing for the first time that the substantive law of Minnesota should apply. The district court determined that Outland had waived that issue and denied leave to amend based on futility and undue delay. The proposed amended counterclaims arose from Gamesa’s 2011 attempt to acquire Outland. The Seventh Circuit affirmed. Outland’s third-party counterclaims are not part of the original case, so Outland needed an independent basis for federal subject matter jurisdiction to assert them in this lawsuit. The court characterized Outland’s arguments as “desperate.” View "McCoy v. Iberdrola Renewables, Inc." on Justia Law