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IN RE WL HOMES LLC

No. 09-10571.

471 B.R. 349 (2012)

In re WL HOMES LLC, et al., Debtors.

United States Bankruptcy Court, D. Delaware.

May 16, 2012.

Attorney(s) appearing for the Case

Carl D. Neff , Ciardi, Ciardi & Astin, Wilmington, DE, Kathleen P. Makowski , Laura Davis Jones , Timothy P. Cairns , Pachulski, Stang, Ziehl & Jones, LLP, Wilmington, DE, Mike D. Neue , The Lobel Firm, LLP, Newport Beach, CA, Richard D. Ackerman , Ackerman, Cowles & Associates, Murrieta, CA, for Debtors.

OPINION1

BRENDAN LINEHAN SHANNON, Bankruptcy Judge.

Before the Court is the Motion for Relief from the Automatic Stay filed by Zurich American Insurance Company. Zurich holds roughly $2.2 million in insurance premium overpayments — called a "return premium" — that belong to the debtor, WL Homes, under a pre-bankruptcy insurance policy. At the same time, a number of homeowners have filed construction defect...

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