The United States by Lamesa National Bank filed suit against Liberty Mutual Insurance Co., asserting that Liberty Mutual was liable under a federally-required surety bond for the alleged misconduct of its principal, a trustee in a Chapter 7 bankruptcy proceeding. Liberty Mutual appeals the judgment against it. Given the comprehensive federal scheme governing the surety bonds of bankruptcy trustees, federal law and the terms of the bond govern questions such as the limitations period for claims against the bond. The district court's judgment is affirmed. 5th U.S. Circuit Court of Appeals, No. 12-10677, 08-06-2013.
In re Schooler
August 16, 2013