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MATTER OF CHICAGO, ROCK ISLAND AND PACIFIC R. CO.

No. 84-1148.

756 F.2d 517 (1985)

In the Matter of CHICAGO, ROCK ISLAND AND PACIFIC RAILROAD COMPANY, Debtor. Appeal of IOWA DEPARTMENT OF TRANSPORTATION.

United States Court of Appeals, Seventh Circuit.

Decided February 28, 1985.

Attorney(s) appearing for the Case

Barbara S. Steiner, Jenner & Block, Chicago, Ill., for debtor-appellee.

Lester Paff, Asst. Atty. Gen., Iowa Dept. of Justice, Iowa Dept. of Trans., Ames, Iowa, for creditor-appellant.

Before ESCHBACH and POSNER, Circuit Judges and WISDOM, Senior Circuit Judge.

POSNER, Circuit Judge.

This appeal by the State of Iowa in a railroad bankruptcy case requires us to consider the duty (if any) of a railroad which becomes bankrupt and ceases operations to place the highways that cross its abandoned rail lines in the condition they would have been in if there had never been a railroad.

In 1975 the Rock Island Railroad, serving areas in the Midwest, including Iowa, petitioned for reorganization under section 77 of the Bankruptcy...

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