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MERIT INS. CO. v. LEATHERBY INS. CO.

No. 77-2220.

581 F.2d 137 (1978)

MERIT INSURANCE COMPANY, Plaintiff-Appellee, v. LEATHERBY INSURANCE COMPANY, Defendant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided July 26, 1978.

Rehearing Denied September 19, 1978.

Attorney(s) appearing for the Case

Donald E. Casey, Chicago, Ill., for defendant-appellant.

Steven G. M. Stein, Chicago, Ill., for plaintiff-appellee.

Before FAIRCHILD, Chief Judge, and SWYGERT, Circuit Judge, and JAMESON, Senior District Judge.

JAMESON, Senior District Judge.

Appellee, Merit Insurance Company, brought this action against appellant, Leatherby Insurance Company, alleging three counts of conspiracy to defraud, rescission, and fraud with respect to a contract of reinsurance between Merit and Leatherby.1 On January 17, 1977, Leatherby, relying on a provision in the contract providing for arbitration of "any controversy or claim arising out of or relating to this contract...

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