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MATTER OF FERNSTROM STORAGE AND VAN CO.

No. 90-1213.

938 F.2d 731 (1991)

In the Matter of FERNSTROM STORAGE AND VAN COMPANY, an Illinois Corporation, Fernstrom Storage and Van Company of Virginia, a Virginia Corporation, Fernstrom Storage and Van Company of Minnesota, a Minnesota Corporation, and Bradley Moving and Storage Company, a Michigan Corporation, Debtors. INTERNATIONAL BUSINESS MACHINES, Plaintiff-Appellee, v. FERNSTROM STORAGE AND VAN COMPANY, and Bradley Moving and Storage Company, Defendants-Appellants.

United States Court of Appeals, Seventh Circuit.

Decided July 25, 1991.

As Modified August 23, 1991.

Attorney(s) appearing for the Case

Edward M. Kay (argued), James T. Ferrini, Robert E. Gilmartin, Lisa Marco Kouba, Clausen, Miller, Gorman, Caffrey & Witous, M. Scott Michel, Dept. of Justice, U.S. Trustee, Chicago, Ill., for plaintiff-appellee.

John F. Horvath (argued), Horvath, Lieber & Quilici, Stephen P. Eisenberg, Leahy, Eisenberg & Fraenkel, Chicago, Ill., for defendants-appellants.

Before POSNER, FLAUM and KANNE, Circuit Judges.

FLAUM, Circuit Judge.

On June 30, 1979, fire damaged a Birmingham, Michigan, warehouse owned by debtor Bradley Moving and Storage Company, a subsidiary of debtor Fernstrom Storage and Van. The blaze destroyed $800,000 worth of computer equipment owned by International Business Machines (IBM) that was stored in the warehouse at the time. IBM presented a claim for damages to Fernstrom on March 12, 1980. When Fernstrom refused to pay, IBM filed a claim with its insurer...

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