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IN RE MODERN DAIRY OF CHAMPAIGN, INC.

Nos. 98-1986, 98-2713.

171 F.3d 1106 (1999)

In re: MODERN DAIRY OF CHAMPAIGN, INC., Debtor. Steve Miller, as Trustee in Bankruptcy for the Estate of Modern Dairy of Champaign, Inc., Plaintiff-Appellant, v. McLean County Unit District No. 5 and Champaign Community Schools District No. 4, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided March 24, 1999.

Attorney(s) appearing for the Case

Steven L. Blakely (submitted), Acton & Snyder, Danville, IL, for Steve Miller.

James D. Green (submitted), Flynn, Palmer & Tague, Champaign, IL, for Champaign Community Schools District No. 4.

Julian E. Cannell (submitted), Kavanagh, Scully, Sudow, White & Frederick, Peoria, IL, for McClean County Unit District No. 5.

Before POSNER, Chief Judge, and EASTERBROOK and KANNE, Circuit Judges.

POSNER, Chief Judge.

Modern Dairy of Champaign, Inc. went into bankruptcy and the trustee brought adversary actions to recover payment for deliveries of milk that the dairy had made to two school districts, McLean and Champaign. The districts conceded nonpayment but sought to offset, against the payments due, damages that they claimed to have sustained when the dairy had stopped delivering milk to them. They argued that their contracts with the dairy were requirements...

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