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Bankruptcy | Case Law | Insurance
INSURANCE
Biltmore Associates v. Twin City Fire Ins. Co., 572 F.3d 663 (9th Cir. 2009)
The Ninth Circuit affirmed the dismissal of the case pursuant to Rule 12(b)(6). The court
held that for purposes of the “insured versus insured” exclusion in the D & O polic, “ the pre-filing
company and the company as debtor-in-possession in chapter 11 are the same entity.” Id. at 671.
Unified Western Grocers v. Twin City Fire, 457 F.3d 1106 (9th Cir. 2006)
Summary judgment dismissing a complaint for coverage under a D & O policy brought by
a bankruptcy trustee was reversed. Although portions of the complaint fell within Cal. Ins. Code
Section 533's exclusion for willful acts, the complaint also alleged negligence and breach of
fiduciary duty which might be covered.
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