Fletcher v. State Treasurer

In 1964 plaintiff, Lynn E. Fletcher, obtained a circuit court judgment for $40,000, and plaintiff LaMar E. Fletcher one for $4,400.38, against the fiduciary of Donald C. Schultz for damages sustained in an automobile accident in 1960, caused by the latter’s negligence. He was insured with the Preferred Insurance Company, a Michigan corporation, against property damage and bodily injury liability arising from automobile collision.

In 1964 a receiver for the insurance company was appointed because it had become insolvent. It had, long before, deposited a sizeable sum of securities with the State…