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BACKWATER, INC. v. PENN-AMERICAN INS. CO.

No. 05-2805.

448 F.3d 962 (2006)

BACKWATER, INCORPORATED, doing business as Finke's, William Finke, and Ruth Finke, Plaintiffs-Appellants, v. PENN-AMERICAN INSURANCE COMPANY, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided May 24, 2006.

Attorney(s) appearing for the Case

Timothy R. Sendak (argued), Gordon A. Etzler (argued), Etzler & Associates, Valparaiso, IN, for Plaintiffs-Appellants.

Michael E. Brown (argued), Kightlinger & Gray, Indianapolis, IN, for Defendant-Appellee.

Before EVANS, WILLIAMS, and SYKES, Circuit Judges.

EVANS, Circuit Judge.

In late December 2001, a Highland, Indiana, nightclub called "Finke's" was vandalized. The damage was extensive, and the club's owners, William and Ruth Finke (more precisely, their company, "Backwater, Inc."), soon filed a claim with the property's insurer, Penn-American Insurance Company. But Penn-American rejected the claim, concluding after a lengthy investigation that the vandalism was an inside job. The Finkes sued, alleging breach of contract...

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