Title In re Baltimore Emergency Services, II, LLC
Judge
James F. Schneider
Entered
Case Number
02-67584
Summary

Chapter 11 debtor provided staffing to hospital emergency rooms and paid for malpractice insurance for its doctors. Malpractice insurer hired claimant law firm to defend two doctors against malpractice claims. After law firm had performed legal work at behest of malpractice insurer, malpractice insurer went into receivership. Subsequently, the debtor filed a Chapter 11 bankruptcy petition. The law firm filed a claim against the debtor, and the debtor, succeeded in interest by a Plan Trust, objected to claim of law firm. Held, because law firm’s claim would only be enforceable under state law against malpractice insurer, debtor’s objection to claim was sustained.

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