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IN RE M.S.V., INC.

No. 89-1341.

892 F.2d 5 (1989)

In re M.S.V., INC., Martin Specialty Vehicles, Inc., Debtors. M.S.V., INC., Plaintiff, Appellant, v. BANK OF BOSTON — WESTERN MASSACHUSETTS, N.A., Defendant, Appellee.

United States Court of Appeals, First Circuit.

Decided December 15, 1989.

Attorney(s) appearing for the Case

David M. Nickless, with whom Nickless and Phillips, Fitchburg, Mass., was on brief, for plaintiff, appellant.

Francis H. Fox with whom Lawrence S. Buonomo, Bingham, Dana & Gould, Boston, Mass., Maurice M. Cahillane and Egan Flanagan & Egan, P.C., Springfield, Mass., were on brief, for defendant, appellee.

Before BREYER, Circuit Judge, VAN GRAAFEILAND, Senior Circuit Judge, and SELYA, Circuit Judge.

BREYER, Circuit Judge.

M.S.V., Inc., the appellant, borrowed money from the appellee, the Bank of Boston. It gave the Bank a secured interest in company assets as collateral. In early 1986 the Bank foreclosed, seized the collateral, sold it, and eventually placed the proceeds — about $20,000 — in escrow. M.S.V. filed for Chapter 11 bankruptcy, sued the Bank in state court, and brought a similar suit in federal bankruptcy court. It basically claimed that...

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