LTC Holdings, Inc., In re--Giuliano v. Ins. Co. of the Pa.
Aug
18
2021
Ruling
Subrogee's subrogation rights were subordinate to the United States' claims that were notpaid in full when settlement was approved. (3d Cir.)[1]-The United States was not yet paid "in full" when the Bankruptcy Court approved the SettlementOrder. Thus, pursuant to 11 U.S.C. § 509(c), the subrogee's subrogation rights were subordinate to theUnited States' remaining and superior claim at the time of the settlement; [2]- The United States wastherefore entitled to waive its setoff rights to satisfy its own claim, and the waiver extinguished thesubrogee's ability to be subrogated to those rights.LTC Holdings, Inc., In re--Giuliano v. Ins. Co. of the Pa., 2021 U.S. App. LEXIS 24643 (3d Cir. August 18, 2021)(Smith, C.C.J.).
Issue(s)
Claims of Codebtors; Subordination to Creditor’s Claim.
ABI Membership is required to access the full summary of LTC Holdings, Inc., In re--Giuliano v. Ins. Co. of the Pa. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member
:
Judge or Jurisdiction information not available