IN RE MADIGAN

BAP No. WW-01-1240-MaMoR. Bankruptcy No. 97-15323.

270 B.R. 749 (2001)

In re John Clifford MADIGAN, Jr., Debtor. Aetna U.S. Healthcare, Inc., Appellant, v. John Clifford Madigan, Jr.; John S. Peterson, Chapter 7 Trustee, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided December 6, 2001.


Attorney(s) appearing for the Case

Grant E. Courtney, Lane, Powell, Spears & Lubersky, Seattle, WA, for Aetna U.S. Healthcare, Inc.

Kevin R. Hansen, Wolfley Basden Hansen, P.S., Port Angeles, WA, for John Clifford Madigan, Jr.

Before: MARLAR, MONTALI, and RUSSELL, Bankruptcy Judges.


OPINION

MARLAR, Bankruptcy Judge.

INTRODUCTION

In this equitable recoupment case, we are asked to determine if there is a "logical relationship" between two long-term disability ("LTD") claims which were separated by an intervening bankruptcy petition. The debtor asserted that the insurer had violated his discharge injunction by adjusting his postpetition benefits in order to recover its prepetition overpayments. The bankruptcy court denied...

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