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Floyd Weed v. Fleet Tire Mart

1980 U.S. Dist. LEXIS 16924 (1980)

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Floyd Weed v. Fleet Tire Mart

United States Bankruptcy Court for the Southern District of Iowa
1980 U.S. Dist. LEXIS 16924 (1980)

  • Written by Philip Glass, JD

Facts

Floyd Weed (Weed) (plaintiff) sued Mansfield Tire & Rubber Co. (Mansfield) and Fleet Tire Mart (Fleet) (defendants) for products liability. Five of the seven causes of action were against Fleet alone. After initiation of this lawsuit, on October 1, 1979, Mansfield filed for Chapter 11 reorganization. Weed opposed the ensuing stay on the basis that Mansfield might have had a products-liability-insurance policy. Weed asserted that collecting on this unproven products-liability-insurance policy would not interfere with reorganization, as insurance policies fell outside estate assets. Thus, Weed moved for relief from the automatic stay to conduct additional discovery on the insurance policy. On March 12, 1980, Mansfield submitted an affidavit asserting that it had no such insurance policy. The district court heard the matter.

Rule of Law

Issue

Holding and Reasoning (O’Brien, J.)

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