Irvin v. Faller (In re Faller)
(Bankr. W.D. Ky. Mar. 17, 2016)
(7th Cir. Mar. 11, 2016)
(Bankr. E.D. Ky. Mar. 7, 2016)
(Bankr. W.D. Ky. Mar. 8, 2016)
The bankruptcy court sustains the debtors’ objection to the creditor’s claim. The court determines that the creditor failed to establish that the transaction with the debtors was intended as a loan. Instead, the parties had formed a partnership with the creditor making capital contributions, rather than loans. Opinion below.
(7th Cir. Mar. 4, 2016)
(6th Cir. B.A.P. Mar. 3, 2016)
(6th Cir. B.A.P. Mar. 3, 2016)
Key Points:
In some circumstances a plaintiff/claimant can bypass a defendant (even an insolvent one) and seek a declaration against the defendant's insurer.
The High Court has confirmed that, if a defendant is insolvent, the plaintiff may seek a declaration that the defendant's insurer is liable to indemnify the defendant, at least when:
(Bankr. S.D. Ind. Feb. 24, 2016)
(Bankr. W.D. Ky. Feb. 18, 2016)