6 results for 'cat:"Bankruptcy" AND cat:"Insurance"'.
J. Whitney partially grants default judgment to an insurance company after its insured breached a general indemnity agreement. The insured, a contractor, failed to pay on a surety bond provided by the company of over $6.9 million. The company is entitled to this amount but cannot access the disbursement until after an underlying bankruptcy case against the insured is resolved.
Court: USDC Western District of North Carolina, Judge: Whitney, Filed On: March 28, 2024, Case #: 3:22cv50, NOS: Other Contract - Contract, Categories: bankruptcy, insurance, Contract
J. Walker finds that the district court properly denied a preliminary injunction to enforce a duty to defend under a directors and officers liability insurance policy covering an independent director sued in an adversarial proceeding in bankruptcy court. No abuse of discretion occurred in the denial, as the director sought a mandatory injunction but failed to meet its heightened standards for a clear showing of likely success on the merits and of irreparable harm. Furthermore, the director's entry into a settlement agreement with the bankruptcy trustee did not moot the appeal. Affirmed.
Court: 2nd Circuit, Judge: Walker, Filed On: March 18, 2024, Case #: 23-690, Categories: bankruptcy, insurance, Injunction
J. Africk grants summary judgment to the FDIC, the government-appointed receiver of a failed New Orleans bank, finding a group of insurance policies cover the FDIC’s timely claims against the bank’s CEO for breach of fiduciary duty and gross negligence in approving loans at the director level.
Court: USDC Eastern District of Louisiana , Judge: Africk, Filed On: November 8, 2023, Case #: 2:22cv9, NOS: Insurance - Contract, Categories: bankruptcy, insurance, Banking / Lending
J. Higginson finds the bankruptcy court properly denied the law firm’s motion to dismiss the adversary proceeding seeking to recover a transfer of the $1 million insurance policy proceeds already received by the firm and its client. The family of one of two individuals killed in a collision with a tractor owned by the debtor filed suit against the debtor, with the other family making a successful Stowers demand, through the law firm, for the $1 million limit of the policy. The debtor’s equitable interest in the insurance proceeds, allowed in “limited circumstances” such that the proceeds can be classified as property, are unaffected by the pre-petition transfer. A transfer of the debtor’s property has been properly alleged. Affirmed.
Court: 5th Circuit, Judge: Higginson, Filed On: October 6, 2023, Case #: 23-40125, Categories: bankruptcy, insurance, Property
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