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IN RE FARLEY INC.

No. 00-1976.

236 F.3d 359 (2000)

In the Matter of FARLEY INC., doing business as Tool & Engineering and Magnus Metals, Debtor. Appeal of Ohio Bureau of Workers' Compensation.

United States Court of Appeals, Seventh Circuit.

Decided December 29, 2000.

Rehearing and Rehearing Denied January 23, 2001.

Attorney(s) appearing for the Case

Benjamin J. Randall (argued), Lawrence M. Karlin, Katz, Randall & Weinberg, Chicago, IL, for Appellant.

Richard L. Fenton (argued), Sonnenschein, Nath & Rosenthal, Chicago, IL, for Debtor-Appellee.

Before BAUER, POSNER, and EASTERBROOK, Circuit Judges.

Rehearing and Rehearing En Banc Denied January 23, 2001.

EASTERBROOK, Circuit Judge.

Like most states, Ohio requires employers to insure their workers' compensation obligations. Ohio permits wellheeled firms to dispense with insurance if they post surety bonds. Bonds are less costly than insurance because the surety has a right of subrogation against the employer in the event the surety is called on to pay. In 1986 Ohio entered the bonding business, requiring...

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