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FEDERAL DEPOSIT INS. CORP. v. W.R. GRACE & CO.

No. 88-2275.

877 F.2d 614 (1989)

FEDERAL DEPOSIT INSURANCE CORPORATION, Plaintiff-Appellee, v. W.R. GRACE & CO. and Grace Petroleum Corporation, Defendants-Appellants.

United States Court of Appeals, Seventh Circuit.

Decided June 21, 1989.

Rehearing and Rehearing Denied September 11, 1989.

Attorney(s) appearing for the Case

Denis McInerney, Cahill Gordon & Reindel, Charles A. Gilman, New York City, W. Donald McSweeney, Schiff Hardin & Waite, Allan Horwich, Chicago, Ill., for defendants-appellants.

William E. Rattner, Hopkins & Sutter, Paul K. Vickrey, Thomas M. Dethlefs, Chicago, Ill., for plaintiff-appellee.

Before BAUER, Chief Judge, and POSNER and RIPPLE, Circuit Judges.

Rehearing and Rehearing En Banc Denied September 11, 1989.

POSNER, Circuit Judge.

This case began as a diversity suit (governed, the parties agree, by Illinois law) for fraud. The plaintiff was Continental Illinois National Bank, the defendants W.R. Grace & Co. and its wholly owned subsidiary, Grace Petroleum Corporation. The parties treat the two Graces as interchangeable; so shall we. The appeal presents questions of contract law and damages.

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