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IN RE WL HOMES LLC

No. 09-10571.

471 B.R. 349 (2012)

In re WL HOMES LLC, et al., Debtors.

United States Bankruptcy Court, D. Delaware.

May 16, 2012.

Attorney(s) appearing for the Case

Carl D. Neff, Ciardi, Ciardi & Astin, Wilmington, DE, Kathleen P. Makowski, Laura Davis Jones, Timothy P. Cairns, Pachulski, Stang, Ziehl & Jones, LLP, Wilmington, DE, Mike D. Neue, The Lobel Firm, LLP, Newport Beach, CA, Richard D. Ackerman, Ackerman, Cowles & Associates, Murrieta, CA, for Debtors.

OPINION1

BRENDAN LINEHAN SHANNON, Bankruptcy Judge.

Before the Court is the Motion for Relief from the Automatic Stay filed by Zurich American Insurance Company. Zurich holds roughly $2.2 million in insurance premium overpayments — called a "return premium" — that belong to the debtor, WL Homes, under a pre-bankruptcy insurance policy. At the same time, a number of homeowners have filed construction defect...

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