HK Systems, Inc. v. Eaton Corp.
Court of Appeals for the Seventh Circuit
1Opinion of the Court
POSNER, Circuit Judge.
This is a diversity suit for breach of contract. The substantive issue, one of Wisconsin law, is the scope of an indemnification clause in a contract for the sale of a business. The clause required the seller, defendant Eaton, to indemnify the buyer, plaintiff HK, for all losses resulting from any “misrepresentation,” “act or omission,” or “occurrence of a matter ... relating to or arising out of the period on or before the Closing Date.”
IBP, a large beef processor, wanted to replace the automated material-handling system in its beef-processing plant in Nebraska.…
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