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FAIRVIEW HOSP. v. SHELL LAKE INDIANHEAD MEM. HOSP.

No. 90-5458MN.

939 F.2d 657 (1991)

FAIRVIEW HOSPITAL AND HEALTH CARE SERVICES, Appellant, v. SHELL LAKE INDIANHEAD MEMORIAL HOSPITAL, INC., d/b/a Terraceview Living Center, Appellee.

United States Court of Appeals, Eighth Circuit.

Decided July 30, 1991.

Attorney(s) appearing for the Case

Stephen P. Lucke, argued (Stephen P. Lucke and William A. Cole, on brief), Minneapolis, Minn., for appellant.

Margaret K. Savage, argued (Margaret K. Savage and Paul S. Jacobsen, on brief), Minneapolis, Minn., for appellee.

Before JOHN R. GIBSON and BOWMAN, Circuit Judges, and DUMBAULD, Senior District Judge.

DUMBAULD, Senior District Judge.

Appellant, a health care provider, lent money to appellee (engaged in the same business) to enable appellee to build a nursing home by means of public financing, to which appellant's claim was to be subordinate. By clever legal maneuvers appellee substituted new bonds for those which had been originally issued at a higher interest rate, but did not pay off appellant's claim, which remained...

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