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§ 542(c)

Schnittjer v. Allied Props. & Cas. Ins. Co. (In re Huebbe)

Ruling
Payment of insurance proceeds directly to debtor violated stay where agent's knowledge of filing was imputed to company.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant insurance company to recover an amount paid directly to the debtor in a settlement agreement reached after the debtor had filed for bankruptcy. The trustee alleged that the insurance company's violation of the automatic stay was willful and sought to recover damages and attorneys' fees. The insurance company claimed that it never received notice of the bankruptcy.

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opinion summary, case decided on September 22, 2006 , LexisNexis #1106-095