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KLX Energy v. Roanald J. Sommers

Court: SD Tx  08/25/2023  Bankruptcy Court Erred by Refusing to Lift Automatic Stay in Matter Where Alleged Additional Insured Sought to Intervene in Action Between Debtor and Insurer

A court of the Southern District of Texas held that a bankruptcy court erred when it refused to grant an alleged additional insured's motion to lift stay on a suit for declaratory relief between an insurer and the bankruptcy debtor, holding that the bankruptcy court lacked authority to determine whether the non-debtor claimant was an additional insured and whether the insurance proceeds were property of the bankruptcy estate while simultaneously denying the alleged additional insured's motion to lift the stay.

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