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FEDERAL INS. CO. v. MALLARDI

No. 86 Civ. 8774 (WK).

696 F.Supp. 875 (1988)

FEDERAL INSURANCE COMPANY, Plaintiff, v. Joseph MALLARDI, Arthur Capozzi, Jr., and Craig Hoekenga, Defendants. Joseph MALLARDI, Arthur Capozzi, Jr. and Craig Hoekenga, Third-Party Plaintiffs, v. PAINE WEBBER, INC., David Lincoln and Mid-Continent Associates Limited Partnership, Third-Party Defendants.

United States District Court, S.D. New York.

July 28, 1988.

Attorney(s) appearing for the Case

Edward J. Daus, Kostelanetz Ritholtz Tigue & Fink, New York City, for third party plaintiffs.

John F.X. Peloso, Morgan, Lewis & Bockius, New York City, for third party defendants.

Janet Neustaetter, Schulte Roth & Zabel, New York City, for plaintiff.

MEMORANDUM AND ORDER

WHITMAN KNAPP, District Judge.

This action arises from defendants' purchase of one and one-half units of Mid-Continent Associates Limited Partnership ("Mid-Continent" or the "Partnership"), a real estate tax shelter investment. In connection with that purchase, defendants signed promissory notes obligating them to make yearly installment payments toward the full purchase price of their units. Contemporaneously, plaintiff Federal Insurance...

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