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IN RE COAST CARLOADING CO.

No. LA 80-12407-JA.

34 B.R. 855 (1983)

In re COAST CARLOADING COMPANY, a California corporation, Debtor.

United States Bankruptcy Court, C.D. California.

October 26, 1983.

Attorney(s) appearing for the Case

Steven C. Shuman, Engstrom, Lipscomb & Lack, Attys. at Law, Los Angeles, Cal., for Underwriters at Lloyds, London signatory to Policy No. AIR 1054 and Aetna Ins. Co.

Andrew F. Leoni, Slate & Leoni, Los Angeles, Cal., for debtor.

Douglas Kappler, Robinson, Wolas & Diamant, Century City, Los Angeles, Cal., for official creditors' committee.

MEMORANDUM OF DECISION

JOHN D. AYER, Bankruptcy Judge.

Coast Carloading Co., the debtor-in-possession in this Chapter 11 case, is a freight hauler. Coast maintained cargo liability insurance to pay customers' claims in the event of loss. During two years, the policy was written by Underwriters at Lloyds ("Lloyds"). In another year, Coast got the insurance from Aetna Insurance Company ("Aetna"; collectively, the "insurers"). The insurers have spent time and...

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