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FIDELITY AND DEPOSIT CO. OF MD. v. ROTEC INDUS.

No. 04-1598.

392 F.3d 944 (2004)

FIDELITY AND DEPOSIT COMPANY OF MARYLAND and AMERICAN HOME ASSURANCE COMPANY, Plaintiffs-Appellants, v. ROTEC INDUSTRIES, INC., Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided December 28, 2004.

Attorney(s) appearing for the Case

Robert G. Watt, Scott W. Kowalski (argued), Watt, Tieder, Hoffar & Fitzgerald, McLean, VA, for Plaintiffs-Appellants.

Michael Gilman (argued), O'Brien, O'Rourke & Hogan, Chicago, IL, for Defendant-Appellee.

Before FLAUM, Chief Judge, and CUDAHY and POSNER, Circuit Judges.

POSNER, Circuit Judge.

The appeal in this diversity suit governed by Illinois law requires us to examine a doctrine of contract law known as "divisibility." Rotec, the defendant, had a contract with Guy F. Atkinson Construction Company relating to China's damming of the Yangtze River — the $25 billion "Three Gorges" project that is due to be completed in 2009. Soon after the contract was signed, Atkinson declared bankruptcy...

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