Mealey's Banking & Finance - Judge Dismisses Insolvent Insurer's Trust's Breach Of Fiduciary Duty Claim

Mealey's Banking & Finance - Judge Dismisses Insolvent Insurer's Trust's Breach Of Fiduciary Duty Claim

SAN FERNANDO VALLEY, Calif. - A trust for an insolvent insurance company failed to allege that banks breached a fiduciary duty by managing the insurer's tax attributes to benefit the banks at the expense of the trust and the insurer's other stakeholders, a California federal judge held May 8, dismissing a breach of fiduciary duty claim (In re: Superior National Insurance; The Litigation Trust for the Trust Beneficiaries of SNTL Corp. and certain affiliates v. JP Morgan Chase and JP Morgan Chase Bank N.A., Chapter 11, Nos. 00-14099 & 13-01099, C.D. Calif. Bky.; 2014 Bankr. LEXIS 2071).

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