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TEXTILE MACHINERY v. CONTINENTAL INSURANCE

No. 79-783.

87 Ill. App.3d 154 (1980)

409 N.E.2d 1

TEXTILE MACHINERY, INC., Plaintiff-Appellant, v. THE CONTINENTAL INSURANCE CO., Defendant-Appellee.

Appellate Court of Illinois — First District (4th Division).

Modified on denial of rehearing September 4, 1980.

Attorney(s) appearing for the Case

Leon E. Lindenbaum, of Chicago (Walsh, Case & Coale, of counsel), for appellant.

Clausen, Miller, Gorman, Caffrey & Witous, P.C., of Chicago (James T. Ferrini, Frank L. Schneider, and Jeffrey J. Asperger, of counsel), for appellee.

Reversed and remanded.

Mr. JUSTICE JIGANTI delivered the opinion of the court:

On December 28, 1971, the defendant, Continental Insurance Company (Continental) undertook the defense of a personal injury lawsuit which had been filed against the plaintiff, their insured, Textile Machinery, Inc. (Textile). On January 6, 1972, a law firm retained by Continental filed an answer on behalf of Textile. Over 2 1/2 years later, on September 26, 1974, Continental notified...

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