R. A. Earnhardt Textile MacHinery Division, Inc. v. South Carolina Insurance

This appeal is from an order relieving respondent insurance company from liability under an insurance policy, issued to appellant. We affirm.

Appellant sold a piece of textile machinery to a Honduras corporation and made certain representations as to the machine’s condition. In July of 1978, the Honduras company commenced a lawsuit against appellant (the “Federal action”) in the United States District Court in this State alleging that the equipment failed to conform to the agreement of the parties. In April of 1980, appellant first notified respondent of the Federal action. When respondent…