No. 12-10677.

725 F.3d 498 (2013)

In the Matter of Robert Dean SCHOOLER; Tina Marie Schooler, Debtors. Liberty Mutual Insurance Company, Appellant v. United States of America by Lamesa National Bank, Appellee.

United States Court of Appeals, Fifth Circuit.

August 6, 2013.

Attorney(s) appearing for the Case

Don Clark Dennis (argued) , Attorney, Boemer, Dennis & Franklin, P.L.L.C., Lubbock, TX, for Appellant.

William Riley Nix, Jr. , Law Offices of Williams Riley Nix, Sherman, TX, for Appellee.

P. Matthew Sutko , Associate General Counsel, Wendy Lang Cox , U.S. Department of Justice, Washington, DC, for Amicus Curiae.

Before KING, DAVIS, and ELROD, Circuit Judges.

KING, Circuit Judge.

In 2009, the United States by Lamesa National Bank filed suit against Liberty Mutual Insurance Company, asserting that Liberty Mutual was liable under a federally-required surety bond for the alleged misconduct of its principal, a trustee in a Chapter 7 bankruptcy proceeding. After a trial on Lamesa's claim, the bankruptcy court concluded that the trustee had committed gross negligence, causing damages...

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