American Cast Iron Pipe Co. v. Statesman Insurance Co.

NEVILLE, District Judge.

The question presented here is: May a materialman who supplied pipe to a now bankrupt general contractor, and whose surety on its contractor’s bond, i. e., Home Owners Insurance Company of Illinois, also is insolvent and the subject of a receivership in the state court of Illinois, prosecute its claim for $146,166.-26 directly against three reinsurance companies, each of whom under a reinsurance treaty and contract reinsured a portion of the face amount of the contractor’s bond issued by Home Owners Insurance Company. This court holds that such an action against the…