Superintendent Of Insurance v. Bankers Life & Casualty Co.

404 U.S. 6 (1971)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Bankers Life (D) agreed to sell all of Manhattan's (P) stock to Begole for $5,000,000. Manhattan was now represented by the New York Superintendent of Insurance (P1). It was alleged that Begole with a party named Bourne conspired to pay for this stock out of P's assets. They arranged to get a $5,000,000 check from Irving Trust even though they had no funds on deposit therein. On the same day, they purchased the stock from D, they installed Sweeny as president of P and then sold a treasury bond for $4,854,552.67. That plus cash on hand in P covered the bad check. The trial court dismissed the complaint, and the Court of Appeals affirmed by a divided bench.