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LPP MORTG., LTD. v. SUGARMAN

No. 08-2134.

565 F.3d 28 (2009)

LPP MORTGAGE, LTD., Plaintiff, Appellant, v. Leonard SUGARMAN, Defendant, Appellee.

United States Court of Appeals, First Circuit.

Decided May 7, 2009.

Attorney(s) appearing for the Case

Christopher P. Litterio, with whom Michael J. Duffy and Ruberto, Israel & Weiner, P.C., were on brief, for appellant.

Daniel J. Murphy, with whom Stanley W. Wheatley and The Murphy Law Group, LLC, were on brief, for appellee.

Before BOUDIN, JOHN R. GIBSON, and HOWARD, Circuit Judges.

BOUDIN, Circuit Judge.

The facts underlying this appeal date back to 1975, when the Small Business Administration ("SBA") loaned $4 million, evidenced by a promissory note, to Statler Industries, Ltd. ("Statler"), an Augusta, Maine, based paper manufacturer. To secure the loan, the SBA received a first priority mortgage on the Statler plant site, a first priority security interest in almost all the company's equipment and...

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