Home Insurance Co. v. Lancaster (In Re Triangle Door & Truss Co.)

MEMORANDUM

CLIVE W. BARE, Bankruptcy Judge.

Ownership of the net proceeds from the trustee’s sale of a tow-motor forklift, the subject of a lease intended for security, Tenn.Code Ann. § 47-1-201(37) (Supp. 1983), is controverted. Because it paid its insured, The Bailey Company (lessor-seller), for the theft loss of the forklift, plaintiff, The Home Insurance Company, claims the proceeds on a theory of subrogation. On behalf of the debtor (lessee-buyer), the trustee contends that the sale proceeds are property of the estate, 11 U.S.C.A. § 541 (1979). Alternatively, the trustee maintains that The…