Art Midwest, Incorporated v. David Clapper

EDITH BROWN CLEMENT, Circuit Judge:

Art Midwest, Inc. and American Realty Trust, Inc. (“ART”) (collectively, the “ART entities”), entered into an agreement with David M. Clapper, Atlantic Midwest, L.L.C. (“Atlantic Midwest”), and Atlantic XIII, L.L.C. (collectively, the “Clapper entities”) to purchase several apartment complexes. The parties organized the transaction so that an intermediate entity, ART Midwest L.P. (the “Partnership”), would be the nominal buyer of the properties. The ART entities attempted to terminate the deal and initiated the underlying lawsuit. The Clapper entities…