In Re Bsc Audio, Inc., Debtor. Charles Darwin Davidson, Trustee v. Insurance Company of North America

Appellant Charles Darwin Davidson, the trustee in bankruptcy and attorney for the bankrupt estate of BSC Audio, Inc. (hereafter the debtor), brought an adversary proceeding in bankruptcy under the Bankruptcy Act of 1898 (as amended) 1 to recover the proceeds of an insurance policy issued by the Insurance Company of North America (INA) to the debtor. The insurance policy covered losses due to the theft of debtor’s inventory. Debtor had filed a claim for losses resulting from a series of burglaries that occurred shortly before filing its petition for bankruptcy.

Before answering debtor’s…