Bumb v. American Home Assurance Co.

WHELAN, District Judge.

Federal jurisdiction to entertain this action is predicated upon diversity of citizenship between the parties, and upon sections 2 and 23 of the Bankruptcy Act, 11 U.S.C. §§ 11 and 46. Plaintiff is the receiver of State Industries (hereinafter State), in pending bankruptcy proceedings (under Chapter XI of the Bankruptcy Act). State, a California corporation allegedly insured under policies issued by the defendant companies (and assignee of loss payees named in the policies), sued Home Insurance Company (hereinafter Home) and American Home Insurance Company (hereinafter…