FEDERAL SAVINGS AND LOAN INSURANCE CORP. v. KRUEGER

No. 18171.

435 F.2d 633 (1970)

FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION, Receiver of Lawn Savings and Loan Association, Plaintiff-Appellant, v. Henry KRUEGER et al., Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

December 17, 1970.


Attorney(s) appearing for the Case

Merrill Shepard, William A. Carey, Donald Page Moore, Chicago, Ill., for appellant; Pope, Ballard, Kennedy, Shepard & Fowle, Chicago, Ill., of counsel.

George J. Schaller, Francis J. Reilly, James M. O'Shaughnessy, Chicago, Ill., for defendants-appellees, William L. Randall, Jeffery Manor, Inc., Randalls Inns Incorporated and Randalls Inns of Indiana, Inc.

Henry W. Kenoe and Raphael Fine, Chicago, Ill., for Henry Krueger, Wayne Krueger, Ronald Krueger, defendant-appellees; Donald S. Lavin, Chicago, Ill., of counsel.

Ned Robertson, Chicago, Ill., for appellee John McErlean; Mayer, Brown & Platt, Chicago, Ill., of counsel.

Before SWYGERT, Chief Judge, CASTLE, Senior Circuit Judge, and PELL, Circuit Judge.


SWYGERT, Chief Judge.

This appeal presents two issues: one concerning jurisdiction of a suit brought by the Federal Savings and Loan Insurance Corporation as the receiver of a state-chartered, defunct savings and loan association; the other concerning the application of the doctrine of abstention.

In April 1968 Lawn Savings and Loan Association, located in Chicago and organized under the laws of Illinois, found itself in serious financial difficulty and unable...

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