In re CFB Liquidating Corp.

Good Law
576 B.R. 610
United States Bankruptcy Court, Northern District of CaliforniaAugust 25, 2017Case No. 01-45483 rleCalifornia1,415 words

Opinion

Lead Opinion

Efremsky, J.

MEMORANDUM DECISION DENYING CONTINENTAL CASUALTY COMPANY’S MOTION FOR LEAVE TO REFILE STATE COURT COMPLAINT NAMING THE TRUSTEE AS DEFENDANT

I. Introduction

On May 8, 2017, Continental Casualty Company (“Continental”) filed a complaint in state court in Illinois naming Barry A. Chatz, the court appointed liquidating trustee for the CFB/WFB Liquidating Trust (the “Trustee” and the “Trust”) as the defendant. The complaint sought declaratory relief regarding Continental’s insurance coverage obligations under policies issued by Continental to Debtors (the “Policies”).

On May 17, 2017, the Court issued an order to show cause asking why Continental and its counsel should not be held in contempt for filing the complaint without the permission of this Court in violation of the Barton doctrine. In response to the order to show cause, Continental dismissed the complaint.

On June 14, 2017, Continental filed the current motion (the “Motion”) seeking per *614 mission to file its Complaint for Declaratory Judgment for Non-Coverage in Illinois state court. Docket no. 571, Ex. A (the “Coverage Complaint”). The Trustee has filed opposition. Docket no. 579. Continental has filed a reply. Docket…

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