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IN RE PAYROLLAMERICA, INC.

Bankruptcy No. 10-00800-JDP. Adversary No. 10-6078-JDP.

459 B.R. 94 (2011)

In re PAYROLLAMERICA, INC., Debtor. Philadelphia Indemnity Insurance Company, Plaintiff, v. PayrollAmerica, Inc., M. Wayne Davis, II and Stephanie W. Davis, husband and wife, and Christopher Barrera, an individual, Defendants.

United States Bankruptcy Court, D. Idaho.

September 19, 2011.

Attorney(s) appearing for the Case

Josh Everett , Elam & Burke, Boise, ID, for Plaintiff.

Cliff Brown and Bo Davies , Holzer & Edwards, Chartered, Boise, ID, for Defendants PayrollAmerica and Jeremy Gugino, Chapter 7 Trustee.

MEMORANDUM OF DECISION

JIM D. PAPPAS, Bankruptcy Judge.

Introduction

Philadelphia Indemnity Insurance Co. ("PIIC") insured chapter 71 debtor PayrollAmerica, Inc. ("Debtor"), a payroll processing services company, its officers, directors, and employees (collectively, with Debtor, "Insureds"), under an Accountants Professional Liability Insurance Policy ("the Policy").

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