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IN RE DONALD SHELDON & CO., INC.

No. 97 CIV. 9384(LAK), Bankruptcy No. 85-6538(AJG), Adversary No. 94-8368.

222 B.R. 690 (1998)

In re DONALD SHELDON & CO., INC., Debtor. FEDERAL INSURANCE COMPANY, Plaintiff-Appellant, v. Donald T. SHELDON, et ano., Defendants, and Don L. Horwitz, Trustee for the Liquidation of Donald Sheldon & Co., Inc., Defendant-Appellee.

United States District Court, S.D. New York.

May 11, 1998.

Attorney(s) appearing for the Case

John W. Schryber, Jay G. Strum, Kaye, Scholer, Fierman, Hays & Handler, New York City, for appellant.

Glen Feinberg, Nina Cangiano, Harold J. Moskowitz, Wilson, Elser, Moskowitz, Edelman & Dicker, New York City, for appellee.

ORDER

KAPLAN, District Judge.

Mary Schad and Donald Sheldon, both former directors of debtor Donald Sheldon & Co., Inc. ("DSCO"), were found liable to the debtor in the amount of $16 million in an adversary proceeding for breaches of their fiduciary duties. The debtor's trustee brought this action against defendant Federal Insurance Company ("Federal") to recover the liability of Sheldon and Schad pursuant...

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