United States v. Oakland City Apartments, Inc. (In Re Oakland City Apartments, Inc.)

MEMORANDUM OF OPINION ON MOTIONS FOR SUMMARY JUDGMENT OF THE TRUSTEE AND THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

A. DAVID KAHN, Bankruptcy Judge.

The question placed before the Court by Motions for Summary Judgment in these two cases is whether the Department of Housing and Urban Development, as a loss payee on an insurance policy, is entitled, purely as a matter of law, to the proceeds from a fire loss which was suffered on properties covered by the policy.

These proceedings arose out of the bankruptcy trustee’s abandonment, on December 5, 1977, of two apartment complexes previously…