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IN RE MILA, INC.

BAP No. WW-09-1142-MoPaH. Bankruptcy No. 07-13059-SJS.

423 B.R. 537 (2010)

In re MILA, INC., Debtor. Geoffrey Groshong, Chapter 11 Trustee, Appellant, v. LAYNE E. SAPP, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Argued and Submitted October 23, 2009.

Ordered Published January 29, 2010.

Attorney(s) appearing for the Case

Brian Esler, Miller Nash LLP, Seattle, WA, for Geoffrey Groshong, Appellant.

C. Keith Allred, Davis Wright Tremaine LLP, Seattle, WA, for Layne E. Sapp, Appellee.

Before: MONTALI, PAPPAS and HOLLOWELL, Bankruptcy Judges.

OPINION

MONTALI, Bankruptcy Judge:

Appellant, chapter 111 trustee Geoffrey Groshong ("Trustee"), appeals a bankruptcy court order granting Appellee, Layne E. Sapp ("Sapp"), relief from the automatic stay allowing the Federal Insurance Company ("Insurer") to advance payments to Sapp for his legal defense costs under a directors and officers insurance policy ("D & O policy") held by...

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