Bankruptcy Plan’s Releases Block Suit to Collect From Insurance

A couple of Embassy Suites guests failed in their bid for personal injury compensation after the Eleventh Circuit held that the hotel property owner sufficiently provided them its Chapter 11 plan terms that bar such lawsuits.

Willie and Nina Jackson sued the Louisville, Ky.-based hotel property owner, Le Centre on Fourth LLC—as well as the company’s owners and affiliates—in hopes of recovering insurance proceeds after a car accident on the property.

But the defendants are shielded from such lawsuits by third-party liability releases in Le Centre’s court-confirmed bankruptcy plan, the U.S. Court of Appeals for the Eleventh Circuit ruled Monday. ...