MOGLIA v. PACIFIC EMPLOYERS INS. CO. NORTH AMERICA

No. 07-1973.

547 F.3d 835 (2008)

Alex D. MOGLIA, Trustee for Outboard Marine Corporation and related debtors, Plaintiff-Appellant, v. PACIFIC EMPLOYERS INSURANCE COMPANY, Indemnity Insurance Company OF NORTH AMERICA, and Ace American Insurance Company, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided November 6, 2008.


Attorney(s) appearing for the Case

Steven B. Towbin, Peter J. Roberts (argued), Shaw, Gussis, Fishman, Glantz, Wolfson & Towbin, Chicago, IL, for Plaintiff-Appellant.

Paul B. Bech (argued), Bazelon Less & Feldman, Philadelphia, PA, for Defendants-Appellees.

Before EASTERBROOK, Chief Judge, and POSNER and ROVNER, Circuit Judges.


EASTERBROOK, Chief Judge.

Pacific Employers and two other insurers issued policies to Outboard Marine Corporation covering workers' compensation, automobile liability, and general liability. These policies (which the parties call "program agreements") require Outboard Marine to post irrevocable letters of credit as security for its obligations to pay premiums and reimburse the insurers for specified outlays.

After Outboard Marine entered proceedings under...

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