2020-10-15_GENERAL DOCUMENTS - C1980004 (2)

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Case 1:20-bk-12043 Doc 453 Filed 10/06/20 Entered 10/06/20 15-26A7 Desc Main Document Page 4 of 9 (Policy § I(C) (Insuring Agreements) (emphasis in original)). Mr. Hughs has alleged that it was securities claims made against the Debtors and its non -debtor affiliate, Royal Energy Resources, Inc. that triggered his own losses. 9. Importantly, if the Court lifts the stay and permits Mr. Hughs' claims to proceed, and those claims are accepted by the insurer, all payments made to Mr. Hughs will deplete available limits for the Debtor. See (Policy, Declarations, Item 3)(Limits include all Loss and defense expenses). In other words, every dollar paid to Mr. Hughs (or any other non -debtor) reduces funds available to the Debtors' estates to pay other creditors with insured claims. The Policy does not include defense or legal costs in addition to limits like a personal auto or homeowners' policy might provide. OBJECTION I. The Proceeds of the Policy are Property of the Estate 10. Other than exceptions not applicable here, "all legal and equitable interests of the debtor in property as of the commencement of the case" constitute property of the estate. 11 U.S.C. § 541(a)(1). The Supreme Court interprets section 541(a) broadly. See United States v. Whiting Pools, Inc., 462 U.S. 198, 204-05 (1983); In reArter& Hadden, L.L.P., 335 B.R. 666,671 (Bankr. N.D. Ohio 2005). 11. Congress enacted §541(a) in 1978 "intendingthe definition of property ofthe estate to be construed broadly to include practically every conceivable interest a debtor may have in property as of the bankruptcy filing date." In re Minton, 348 B.R. 467, 472 (Bankr. S.D. Ohio 2006). 12. Bankruptcy courts throughout this circuit and others have generally found that a debtor's insurance policies are property of the estate, and that the only issue is whether the proceeds of such policies are also property of the estate. See, e.g., In re Arter & Hadden, L.L.P., Ll