Sentry Select Insurance v. Badiou (In re Badiou)

SUPPLEMENTAL FINDINGS OF FACT AND CONCLUSIONS OF LAW

On December 18, 2014, this court stated oral findings of fact and conclusions of law on the record in this Adversary Proceeding. Fed. R. Civ. P. 52(a)(1); Fed. R. Bank. P. 7052. At that hearing, the parties presented arguments on whether the punitive damages claim could be assigned or be subject to subrogation. The parties thereafter filed post-trial briefs on the issue. Upon consideration of the additional arguments and post-trial briefs, the court determined that supplemental findings of fact and conclusions of law are necessary to provide a complete record on the issue.

SUPPLEMENTAL FINDINGS AND CONCLUSIONS

The court is presented with the issue of whether Sentry Select Insurance Company (“Sentry Select”) obtained by subrogation the rights of American Chevrolet-Geo, Inc. (“Insured”) to prosecute a claim for punitive damages arising from the conduct of Michael Badiou (“Defendant-Debtor”). Sentry Select is prosecuting this Adversary Proceeding asserting the claim it obtained by subrogation from Insured for $349,899.75 in damages arising from the misconduct of the Defendant-Debtor.

As shown in the competing post-trial…