Bankrupt Reliance Can't Recover Paid Claims: Court

Law360, New York (February 24, 2009, 12:00 AM EST) -- In a blow to Reliance Insurance Co.'s liquidator, Pennsylvania's highest court has upheld a ruling for Apple Inc. and others and found that payments insurers make on claims in the ordinary course of business within a year before becoming insolvent do not count as a preference and cannot be recovered during liquidation.

On Monday, the Supreme Court of Pennsylvania refused a request from the state's insurance commissioner, acting as Reliance's liquidator, to overturn a lower court's decision for Apple, along with H.J. Heinz Co., Ingram Micro...
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