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Bpi Energy Holdings, Inc., et al v. Iec (Montgomery), LLC, et al

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ARGUED SEPTEMBER 13, 2011

Before POSNER, SYKES, and HAMILTON, Circuit Judges.

The plaintiffs, affiliated corpora- tions that we’ll refer to jointly as BPI, are producers of “coal bed methane” gas, a form of natural gas present in coal seams. (Natural gas is methane. We’ll call coal bed methane gas simply “the gas”; the trade calls it CBM.) The defendants comprise a large private coal- mining company named Drummond Company, Inc., see www.drummondco.com (visited Dec. 5, 2011) and a number of limited liability companies created by and affiliated with it and unnecessary to discuss separately. For simplicity’s sake we’ll pretend that all the Drummond companies are one company and call it Drummond. BPI has sued Drummond for fraud, basing jurisdiction on diversity of citizenship. The district court granted sum- mary judgment in favor of Drummond, precipitating this appeal. The substantive issues in the appeal are governed by Illinois law.

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