- 11 U.S.C.
Texas AG v. Brown (In re Fort Worth Osteopathic Hosp. Inc.)
Apr
30
2008
Ruling
Ipso facto clause in debtor's D&O policy precluded any recovery by trustee on behalf of creditors.
Procedural posture
The plaintiff in the first action, the Attorney General of Texas, who sought to recover proceeds from policies insuring defendant directors and officers of debtor hospital, moved for partial summary on the issue that the application of 11 U.S.C.S. § 541(c)(1) did not invalidate an ipso facto endorsement in the insurance policies. Defendant trustee sought recovery under the policies for the benefit of the creditors.
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Court
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