Bankruptcy — intervention

By: WISCONSIN LAW JOURNAL STAFF//April 25, 2014//

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U.S. Court of Appeals For the Seventh Circuit

Civil

Bankruptcy — intervention

An excess insurer cannot intervene in its insured’s bankruptcy.

“Our case doesn’t involve a threat to Columbia’s rights, though at oral argument there were some dark hints from Columbia’s lawyer that there was hanky-panky involved in Hall’s settlement with Integrity. The hints are absent from Columbia’s briefs. All we learn there is that Columbia would have liked an opportunity to prove that Hall should have been more aggressive in the settlement negotiations, because had it been it might have gotten a larger settlement and if so it would have a smaller potential claim against Columbia, its back-up insurer. That’s just like our hypothetical case of the employee of Columbia who objects to the settlement on the ground that it may cost him his job by increasing his employer’s potential liabilities.”

Affirmed.

13-1306 In re C.P. Hall Co.

Appeal from the United States District Court for the Northern District of Illinois, Darrah, J., Posner, J.

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