State Farm Life Insurance v. Swift

WISDOM, Circuit Judge:

This bankruptcy case presents a complex issue of ownership of causes of action against the State Farm Insurance Co. (State Farm) for its alleged negligence and breach of fiduciary duty that resulted in the loss of a bankruptcy exemption claimed by David Swift, the debtor. We hold that the causes of action became property of the bankruptcy estate but are exempt under Tex. Prop.Code § 42.0021. We AFFIRM the district court’s decision.

I

Swift was a State Farm insurance agent who participated in a Keogh retirement plan administered by State Farm. 1 In 1986, Congress…