Skip to main content

§ 509(c)

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

In re Applause LLC

Feb
23
2006
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
LexisNexis Article
Learn More
Subscribe to %1