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STEPHAN v. ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.

Nos. 96-4171, 97-1798.

129 F.3d 414 (1997)

Lawrence F. STEPHAN, a citizen of Illinois, and Patricia L. Stephan, a citizen of Illinois, Plaintiffs-Appellees, v. ROCKY MOUNTAIN CHOCOLATE FACTORY, INC., a Colorado corporation, Defendant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided November 10, 1997.

Attorney(s) appearing for the Case

Mitchell Bryan (argued), Scott H. Reynolds, Levenfeld, Eisenberg, Janger, Glassberg & Samothy, Chicago, IL, for Plaintiffs-Appellees.

George N. Vurdelja, Jr. (argued), Vurdelja & Heaphy, Chicago, IL, for Defendant-Appellant.

Before CUDAHY, RIPPLE and KANNE, Circuit Judges.

CUDAHY, Circuit Judge.

The Colorado Supreme Court has not considered whether a default judgment gives rise to issue preclusion under Colorado law. This, however, is the threshold question in appellees Patricia and Lawrence Stephan's suit against appellant Rocky Mountain Chocolate Factory, Inc. (Rocky Mountain). The Stephans sued Rocky Mountain for a declaration that they have no financial exposure under a sublease, and the district court granted summary judgment sua...

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