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JOHN HANCOCK MUT. LIFE v. CAROLINA POWER & LIGHT

Cal. No. 1414, Docket 83-7079.

717 F.2d 664 (1983)

JOHN HANCOCK MUTUAL LIFE INSURANCE CO., etc., Plaintiffs-Appellants, v. CAROLINA POWER & LIGHT COMPANY and Irving Trust Company, Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided August 31, 1983.

Attorney(s) appearing for the Case

Cahill, Gordon & Reindel, William E. Hegarty, R. Anthony Zeiger, H. Richard Schumacher, New York City, for plaintiffs-appellants.

Reid & Priest, Louis H. Willenken, John M. Stuart, Peter C. Williams, New York City, for defendants-appellees.

Before VAN GRAAFEILAND, PIERCE and WISDOM, Circuit Judges.

WISDOM, Circuit Judge.

This is a diversity action for breach of contract or, alternatively, for reformation of the contract. Nineteen insurance companies, purchasers of bonds from Carolina Power & Light ("CP & L"), challenge CP & L's special redemption of those bonds with cash from a special maintenance fund provided for in the mortgage securing the bonds. The plaintiffs contend that CP & L breached an agreement not to redeem the bonds for ten years...

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