5th Circ. Says Defunct Staffing Co. Can't Shake Insurer's Bills

Law360 (February 12, 2020, 10:31 PM EST) -- The Fifth Circuit has ruled on a "mathematically complex but legally straightforward" bankruptcy appeal, holding that a defunct staffing company is responsible for various fees and invoices owed to Zurich American Insurance Co. despite moving to another insurer prior to bankruptcy.

The three-judge appeals panel on Tuesday backed a lower court's ruling that Zurich American Insurance can claim just over $7.6 million in the bankruptcy of Trendsetter HR LLC and two related companies, which previously was insured for workers' compensation by Zurich.

Trendsetter had argued that the lower court had allowed Zurich to make "double" claims — one for about $3...

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