U.S. Court of Appeals for the Seventh Circuit, 1997

The Seventh Circuit affirmed in part and reversed in part the district court's dismissal with prejudice of GE Capital's fraudulent transfer and successor liability claims against Lease Resolution Corporation (LRC), the entity that received 95% of Datronic Rental's assets in a class-action settlement.

The Seventh Circuit affirmed dismissal with prejudice as a permissible sanction for Dr. Ladien’s repeated discovery misconduct and violations of court orders. Applying abuse-of-discretion review, the court concluded that the district court’s patient warnings and opportunities to comply made dismissal proportionate to…