Archive: December 6, 2005

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Despite Evidence of Intentional and Negligent Concealment, Bankruptcy Court Dismisses Trustee’s Spoliation of Evidence Counterclaims Because No Injury Was Shown

Despite Evidence of Intentional and Negligent Concealment, Bankruptcy Court Dismisses Trustee’s Spoliation of Evidence Counterclaims Because No Injury Was Shown

In re Tri-State Armored Services, Inc., 332 B.R. 690 (Bankr. D.N.J. 2005)

Insurance company brought adversary proceeding against Chapter 7 trustee, seeking either equitable rescission of employee dishonesty, crime, and disappearance insurance policies issued to debtor armored car company, or declaratory judgment that coverage did not exist under the policies. The trustee asserted several counterclaims against the insurer and served discovery requests that sought the production of all documents, including emails related to the insurance policies and the trustee’s claims. The trustee thereafter filed a motion to compel and obtained an order directing the insurer to comply with the outstanding discovery requests. Still, the insurer produced no emails. Read More

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