[Download] "Melco System Et Al. v. Receivers" by Supreme Court of Alabama # eBook PDF Kindle ePub Free
eBook details
- Title: Melco System Et Al. v. Receivers
- Author : Supreme Court of Alabama
- Release Date : January 20, 1958
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 68 KB
Description
MERRILL, Justice. The receivers of Trans-America Ins. Co., Inc., and insolvent domestic casualty insurance company, filed
a petition in the Circuit Court of Montgomery County, In Equity, showing that Trans-America was the defendant in many law
suits, and that Trans-America had a reinsurance treaty with Employers Reinsurance Corp. of Kansas City, Missouri, whereby
Employers agreed to assume all liability for judgments against Trans-America in excess of $10,000. The petition further showed
that Employers, while denying liability, had agreed to compromise the claims of Trans-America by paying $130,000 to the receivers,
provided that this amount settled all claims against Employers by Trans-America, its receivers or any other persons, arising
out of the reinsurance contract. The petition further alleged that the receivers felt it was to the best interest of the receivership
and all the creditors that the offer be accepted, and asked the court to construe the reinsurance contract and ascertain if
the settlement could be accepted by the receivers. The petition requested the court to select one or more creditors of Trans-America
from the thousands located over the United States, and to permit the one selected to represent all the creditors of their
particular class. Several creditors were named and notified but the only ones contesting are appellant, Melco System, to whom
Trans-America had issued an automobile liability insurance policy under which appellant, Seven-Up Bottling Co. was also covered,
and Granville Turner. The lower court approved the compromise. The three appeals here considered were consolidated in one record.