Universal Underwriters Group v. Allen (In Re Allen)

DECISION and ORDER

BURTON PERLMAN, Bankruptcy Judge.

In this adversary proceeding, plaintiff is a subrogee of Suburban Motors Company by reason of an employee blanket bond issued by plaintiff to Suburban, covering conduct by employees of Suburban. Defendant/debtor was an employee of Suburban. Plaintiff says that conduct by defendant gives rise to a claim pursuant to § 523(a)(2), (4) and (6), for which plaintiff had to indemnify Suburban. Plaintiff here seeks, as subrogee, to recover the amount paid to Suburban on account of acts of defendant.

Earlier, plaintiff had filed a suit in state court to…