Classic Cheesecake Co. v. JPMorgan Chase Bank, N.A.

POSNER, Circuit Judge.

This appeal requires us to interpret a gloss that the Indiana courts have placed on their state’s statute of frauds: an oral agreement that the statute of frauds would otherwise render unenforceable creates a binding contract if failing to enforce the agreement would produce an “unjust and unconscionable injury and loss.” E.g., Bromi v. Branch, 758 N.E.2d 48, 52 (Ind. 2001). The issue arises from the plaintiffs’ supplemental claims, 28 U.S.C. § 1367, which are based on Indiana law. The federal claim on which the district court’s jurisdiction was originally based, a claim…