Lyon Financial Services, Inc. v. Ill. Paper and Copier Co.

Federal 7th Circuit Court
Civil Court
Case Number: 
No. 12-2210
Decision Date: 
October 9, 2013
Federal District: 
N.D. Ill., E. Div.
Question certified
In action alleging that defendant breached master contract that gave plaintiff first right of refusal to provide lease financing for defendant’s customers arising out of clause in contract that expressly warranted that “all lease transactions presented to [plaintiff] are valid,” Ct. of Appeals certified question to Minnesota Supreme Court where: (1) record showed that 6-year lease presented to plaintiff from defendant’s Illinois municipal customer was invalid under Illinois law; and (2) defendant argued that there could be no breach of contract since subject matter of warranty was representation of law as opposed to fact. While Dist. Ct. granted defendant’s motion to dismiss based on defendant’s argument, Ct. of Appeals certified question where it was uncertain as to Minnesota Supreme Court’s resolution as to whether representations of law are ever enforceable under contract or warranty law.