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CRIST v. SHARP ELEC., INC.

Nos. 88-3508, 88-3769.

876 F.2d 379 (1989)

Lewis R. CRIST, Director, Division of Insurance, Department of Economic Development, State of Missouri, Acting as a Domiciliary Receiver of Transit Casualty Co. in Liquidation, Plaintiff-Appellant, v. SHARP ELECTRIC, INC., Defendant-Appellee. Lewis R. CRIST, Director, Division of Insurance, Department of Economic Development, State of Missouri, Acting as a Domiciliary Receiver of Transit Casualty Co. in Liquidation, Plaintiff-Appellant, v. DRAKE CONCRETE CO. OF BELLE CHASSE, INC., Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

June 20, 1989.

Attorney(s) appearing for the Case

Kent B. Ryan, and Andrew S. de Klerk, Lemele, Kelleher, Kohlmeyer, Dennery, Hunley, Moss & Frilot, New Orleans, La., for Lewis R. Crist.

Judith R. Atkinson, Baton Rouge, La., for amicus-LA. Guaranty.

Norwood N. Hingle, Jr., Charles N. Miller, Jr., New Orleans, La., for Sharp Elec., Inc.

George Pivach, II, Pivach, Cossich & Pivach, Belle Chasse, La., for Drake Concrete Co.

Before BROWN, WILLIAMS and JOLLY, Circuit Judges.

E. GRADY JOLLY, Circuit Judge:

In this diversity case, when the insurer was declared insolvent, the insureds owed the insurer some $194,000 in unpaid premiums. The insurer, however, because of insolvency, failed to defend claims after the date of insolvency. The insureds refused to pay the insurer's receiver on grounds that the insurer's failure to defend was a breach of the contract, relieving the insureds of any further obligation under the contract. The district...

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