Utica Mutual Insurance v. Vigo Coal Co.
Court of Appeals for the Seventh Circuit
1Opinion of the Court
POSNER, Circuit Judge.
This diversity suit for breach of a sure-tyship contract, decided in favor of the defendants after a bench trial, presents questions primarily relating to the contract-law doctrine of “novation,” but more broadly to principles of contract interpretation; all the questions are governed by the common law of Indiana.
In 1991 defendant Vigo purchased Buck Creek Coal, which operated a coal mine and was required by both federal and state law to post reclamation bonds as a condition of being permitted to operate the mine. 30 U.S.C. § 1259(a); 30 C.F.R. § 800.20; Ind.Code §…
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