Underwriter Not Owed $5M In Liability Ins.: Court

Law360, New York (October 29, 2008, 12:00 AM EDT) -- The estate of a bankrupt underwriter of municipal bonds, Miller & Schroeder Inc., will not be able to collect insurance payments for the litigation costs, related to $140 million in defaulted bonds, that triggered the bankruptcy, the U.S. Court of Appeals for the Eighth Circuit has ruled.

The appeals court on Monday reversed a decision by the U.S. District Court for the District of Minnesota awarding $5 million to the Minneapolis-based Miller & Schroeder from Executive Risk Indemnity Inc.

The appeals court concluded that both the...
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