Skip to main content

§ 509

LTC Holdings, Inc., In re--Giuliano v. Ins. Co. of the Pa.

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
Commercial opinion summary, case decided on August 18, 2021 , LexisNexis #1021-005

Glaspell, In re--Glaspell v. United States

Ruling
Debtor's second amended complaint failed to state a claim upon which relief could be grantedas she failed to adequately plead, nor could she support, any viable legal claim to equitablesubrogation. (Bankr. N.D. W. Va.)
Issue(s)
Claims of Codebtors.

ABI Membership is required to access the full summary of Glaspell, In re--Glaspell v. United States Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on January 20, 2021 , LexisNexis #0221-083

Glaspell, In re--Glaspell v. United States

Ruling
Debtor’s complaint for reimposition of the automatic stay denied and subrogation of creditor’sclaim against the estate was not available as debtor and the estate were not co-debtors. (Bankr.N.D. W. Va.)
Issue(s)
Claims of Codebtors; Subrogation.

ABI Membership is required to access the full summary of Glaspell, In re--Glaspell v. United States Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on August 07, 2020 , LexisNexis #0920-058

Dwyer v. Ins. Co. (In re Pihl, Inc.)

Ruling
Sureties’ equitable subrogation claim arose when the sureties became legally obligated. (Bankr.D. Mass.)
Issue(s)
Did sureties’ equitable subrogation claim arise upon making payments or upon incurring a legal obligation to pay?

ABI Membership is required to access the full summary of Dwyer v. Ins. Co. (In re Pihl, Inc.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on September 26, 2016 , LexisNexis #1016-079

In re Morrison

Ruling
Creditor that paid loan in full subrogated to lender’s claim. (Bankr. D. Mass.)
Issue(s)
After creditor paid a debt on which both he and the the debtors were guarantors, was creditor subrogated to the lender's position against the debtors, including the lender's third mortgage position on the debtors' home?

ABI Membership is required to access the full summary of In re Morrison Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on August 02, 2016 , LexisNexis #0816-101

In re Ariana Energy LLC

Ruling
Creditor's subrogation claim disallowed absent proof of status as guarantor of debtor's performance under transportation agreement.
Issue(s)
Was creditor entitled to a subrogation claim as an alleged guarantor of debtor's transportation agreement?

ABI Membership is required to access the full summary of In re Ariana Energy LLC Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on October 30, 2015 , LexisNexis #1115-115

In re Scott

Ruling
Debtor was not entitled to reimbursement by trustee from estate's share of lawsuit settlement proceeds to make up for garnishment by bank from debtor's own share of proceeds.
Procedural posture

Debtor filed a petition under chapter 7 of the Bankruptcy Code, and a trustee was appointed to administer the debtor's bankruptcy estate. The trustee filed objections to the debtor's claims that a tort claim and a workers' compensation claim he possessed were exempt property, but reached a settlement with the debtor. After the court approved the settlement, the debtor sought relief from the terms of the court's order.

ABI Membership is required to access the full summary of In re Scott Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on September 10, 2009 , LexisNexis #1009-135

CIT GroupEquipment Fin. Inc. v. Airport Shuttle Inc.

Ruling
Guarantors protected from excessive recovery by creditor participating in obligor's bankruptcy.
Procedural posture

Plaintiff leasing company sued defendants, two guarantors, after a tour company defaulted on two master lease agreements. The leasing company had leased motor coaches to a touring company. The leasing company sought summary judgment on two Louisiana guaranty agreements.

ABI Membership is required to access the full summary of CIT GroupEquipment Fin. Inc. v. Airport Shuttle Inc. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on July 25, 2007 , LexisNexis #0807-113

Fibreboard Corp. v. Celotex Corp. (In re Celotex Corp.)

Ruling
Party primarily responsible for asbestos injury was not entitled to subrogation against debtor.
Procedural posture

Plaintiff corporation appealed a summary judgment issued by the District Court for the Middle District of Florida that affirmed a bankruptcy court's determination that plaintiff could not bring a subrogation claim against defendant debtor in bankruptcy proceedings under either 11 U.S.C. § 509(b)(2) of the Bankruptcy Code or Florida common law.

ABI Membership is required to access the full summary of Fibreboard Corp. v. Celotex Corp. (In re Celotex Corp.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
opinion summary, case decided on December 20, 2006 , LexisNexis #0207-021

In re Applause LLC

Ruling
Court deemed that subrogee's claim was not subrogated to lessor's claim and subrogee was entitled to priority claim.
Procedural posture

Lessor filed a claim for unpaid future rents arising from the debtor's breach and rejection of a lease. Subrogee also filed a claim for repayment of its prior payments on a letter of credit it posted in favor of the lessor to cover the debtor's nonpayment, plus miscellaneous contractual damages. The debtor objected to both proofs of claim. Subsequently, the lessor and the debtor stipulated to a proof of claim in the amount of $800,000.

ABI Membership is required to access the full summary of In re Applause LLC Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on February 23, 2006 , LexisNexis #0806-055