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ORIX CREDIT ALLIANCE, INC. v. PAPPAS

No. 90-3147.

946 F.2d 1258 (1991)

ORIX CREDIT ALLIANCE, INC., Plaintiff-Appellant, v. James PAPPAS and Parashevic Pappas, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided October 25, 1991.

Attorney(s) appearing for the Case

Michael J. O'Rourke (argued), Frank J. Kokoszka, Brian E. Neuffer, Michael J. Collins, Winston & Strawn, Chicago, Ill., for plaintiff-appellant.

Nathaniel Ruff (argued), Lesniak & Ruff, East Chicago, Ind., Robert J. Rooth, Adler & Rooth, Chicago, Ill., for defendants-appellees.

Before COFFEY, MANION and KANNE, Circuit Judges.

KANNE, Circuit Judge.

Pursuant to two separate agreements, Orix Credit Alliance, Inc., leased six trailers — four Fruehauf trailers and two Timpte grain trailers — to Orlando Cartage, Inc. Orlando became bankrupt and defaulted on payment due under the leases. Orix sued James Pappas and Parashevic Pappas as guarantors. The Guarantors concede liability under the Fruehauf agreement but argue that the agreement is a sales agreement with a retained security...

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