United States Sixth Circuit

In a dispute over an insurer's obligations, which arose within part of multidistrict litigation resulting out of the collapse of plaintiff-bankruptcy debtor's equipment leasing business in what was alleged to have been a Ponzi-type scheme, an order granting a 12(c) motion in favor of banks and against the insurer with respect to liability is affirmed. However, the award of damages is reversed and remanded as the insurer's liability as surety should not exceed the principal obligation due to a bank as the intended obligee.

Appellate Information

• Decided 11/14/2007
• Published 11/14/2007

Judges

• Before:  GUY, ROGERS, and McKEAGUE, Circuit Judges.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  Stephen A. Cozen, Cozen O'Connor, Philadelphia, Pennsylvania, for Appellant.  Barry R. Ostrager, Simpson, Thacher & Bartlett, New York, New York, for Appellees.   ON BRIEF:  Stephen A. Cozen, Richard C. Mason, Cozen O'Connor, Philadelphia, Pennsylvania, for Appellant.  Barry R. Ostrager, George S. Wang, Simpson, Thacher & Bartlett, New York, New York, for Appellees.