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STILWELL v. AMERICAN GENERAL LIFE INS. CO.

Nos. 07-2613, 07-2684.

555 F.3d 572 (2009)

Margaret J. STILWELL, Haley Stilwell, Heidi Stilwell, Jamie Stilwell, and Megan Stilwell, Plaintiffs-Appellants, v. AMERICAN GENERAL LIFE INSURANCE COMPANY, Defendant, Third-Party Plaintiff, Appellee, Cross-Appellant, v. First Mid-Illinois Bank & Trust, Tuscola Furniture Group, LLC, and Janko Financial Group, LLC, Third-Party Defendants, Cross-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided February 5, 2009.

Attorney(s) appearing for the Case

David Stevens (argued), Heller, Holmes & Associates, Mattoon, IL, for Plaintiffs-Appellants.

Daniel J. McMahon, Cinthia Granados Motley, Rebecca Rothmann (argued), Wilson, Elser, Moskowitz, Edelman & Dicker, Chicago, IL, Julie A. Beyers, Heavner, Scott & Beyers, Decatur, IL, Timothy J. Howard, Howard & Howard, Peoria, IL, for Defendants-Appellees.

Before EASTERBROOK, Chief Judge, and WOOD and SYKES, Circuit Judges.

SYKES, Circuit Judge.

Margaret Stilwell sued American General Life Insurance Company for breach of contract, challenging the validity of a reassignment of her interest in a $4 million life-insurance policy on the life of her husband, James. To secure debt used to finance one of her husband's businesses, Mrs. Stilwell made two assignments of the policy to Janko Financial Group, L.L.C., each in the amount of $2 million. Janko, in turn, reassigned its interest in the...

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