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Texas Lawbook: Judge Isgur Says Trustee’s Settlement Demand in D&O Insurance Dispute ‘Reasonable,’ Insurer’s Refusal ‘Wrongful’

December 12, 2025·Media Coverage·less than a minute

By Michelle Casady

A federal bankruptcy judge in Houston has determined that while a litigation trustee’s $4.65 million settlement demand is reasonable, the court cannot compel Relm Insurance Ltd. to fund the within-limits settlement.

The ruling from U.S. Bankruptcy Judge Marvin Isgur this week came in a case where Tribolet Advisors, as plan administrator and litigation trustee of the Mining Project Wind Down Holdings Litigation Trust, had asked the court for an order that would compel Relm to fund the settlement under a directors’ and officers’ liability insurance policy.  

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