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DREXEL BURNHAM LAMBERT GROUP, INC. v. VIGILANT INS. CO.

No. 90 Civ. 6565 (DNE).

130 B.R. 405 (1991)

The DREXEL BURNHAM LAMBERT GROUP, INC. and Drexel Burnham Lambert Incorporated, as debtors-in-possession, Plaintiffs, v. VIGILANT INSURANCE COMPANY, et al., Defendants.

United States District Court, S.D. New York.

August 5, 1991.

Attorney(s) appearing for the Case

Rosenman & Colin, New York City, Peter F. Nadel, Alan I. Raylesberg, Barry Michael Okun, for plaintiff.

D'Amato & Lynch, New York City, Alfred A. D'Agostino, Jr., Jerome Murray, Gregory Bitterman, of counsel, for defendants Nat. Fire Ins. Co. of Pittsburgh, Pa., Reliance Ins. Co. and Reliance Ins. Co. of New York.

Bingham, Englar, Jones & Houston, New York City, Alfred J. Morgan, Jr., Jeffrey M. Winn, of counsel for the Burnhope defendants.

Sedgwick, Detert, Moran & Arnold, New York City, Robert B. Budelman, Jr., Kevin M. Mattessich, of counsel for defendants Vigilant Ins. Co., Federal Ins. Co., Chubb and Son, Inc., and McAteer & Fitzgerald, Inc.

Gottesman, Wolgel, Smith & Secunda, New York City, Harold H. Wolgel, for defendant The Home Ins. Co.

MEMORANDUM & ORDER

EDELSTEIN, District Judge:

Plaintiffs The Drexel Burnham Lambert Group Inc. ("DBL Group") and Drexel Burnham Lambert Incorporated ("DBL Inc.") (collectively "Drexel") have moved to remand this action to the New York State Supreme Court for New York County. For the reasons stated below, plaintiffs' motion is granted.

I. BACKGROUND

Drexel has pleaded guilty to criminal charges, entered into a consent decree with the...

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