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MATTER OF KILGUS

No. 86-2072.

811 F.2d 1112 (1987)

In the Matter of Andrew H. KILGUS, Debtor. David REICHMAN and Reichman Enterprises, Inc., Appellants, v. UNITED STATES FIRE INSURANCE COMPANY, Appellee.

United States Court of Appeals, Seventh Circuit.

Decided February 9, 1987.

Rehearing Denied April 13, 1987.

Attorney(s) appearing for the Case

Rodney A. Brown, Matays Hughes & Brown, New York City, for appellants.

William I. Covey, Heyl, Royster, Voelker & Allen, Peoria, Ill., for appellee.

Before POSNER and EASTERBROOK, Circuit Judges, and PARSONS, Senior District Judge.

EASTERBROOK, Circuit Judge.

United States Fire Insurance Co. issued to David Reichman a policy of insurance on a DC-3 airplane. The airplane was stolen promptly after the policy issued in July 1982 and later was impounded by Colombia as an instrumentality of the drug trade. Andrew Kilgus filed a petition in bankruptcy in September 1982, and the next month the trustee of Kilgus's estate filed an adversary proceeding against Reichman and U.S. Fire. The complaint alleged...

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