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IN RE COMDISCO, INC.

No. 05-1697.

434 F.3d 963 (2006)

In re: COMDISCO, INC., Debtor. Appeal of: Downey Savings and Loan Association, F.A.

United States Court of Appeals, Seventh Circuit.

Decided January 17, 2006.

Attorney(s) appearing for the Case

Michael M. Berger, Manatt, Phelphs & Phillips, Los Angeles, CA, Constantine L. Trela, Jr. (argued), Sidley Austin LLP, Chicago, IL, for Appellant, Downey Sav. and Loan Ass'n, F.A.

William J. McKenna, Jr. (argued), Foley & Lardner, Chicago, IL, for Debtor-Appellee, Comdisco, Inc.

Before POSNER, KANNE, and SYKES, Circuit Judges.

POSNER, Circuit Judge.

Comdisco, now in bankruptcy, had a contract with Downey, which Downey alleged Comdisco had broken. After a trial, the bankruptcy judge decided there had been no breach. The district court affirmed, and Downey appeals. The issue is the interpretation of a sale and leaseback arrangement intended by Downey to generate a considerable tax savings for it. Both the sale and the lease specify that Illinois law is to govern any dispute arising from the...

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