Martinez v. OGA Charters, LLC

by
The Fifth Circuit affirmed the bankruptcy court's finding that proceeds of debtor's liability police were property of the bankruptcy estate. The court held that, in limited circumstances such as the one here, where a siege of tort claimants threaten debtor's estate over and above the policy limits, the proceeds are property of the estate. In this case, over $400 million in related claims threatened debtor's estate over and above the $5 million insurance policy limit, giving rise to an equitable interest of debtor in having the proceeds applied to satisfy as much of those claims as possible. View "Martinez v. OGA Charters, LLC" on Justia Law