An insurer (State Farm) sought to pursue a subrogated claim against fuel oil suppliers for contamination losses.
The central issue was whether the insurer could commence the action in the name of its bankrupt insured or whether it was required to proceed in the name of the trustee in bankruptcy.
The majority held that the insurer's subrogation rights do not create a proprietary interest in the cause of action itself, and that upon the insured's bankruptcy, the cause of action vested in the trustee.
Consequently, the insurer could not commence the action in the name of the undischarged bankrupt but should have proceeded in the trustee's name.
The majority dismissed the action.
A dissent would have remitted the matter to permit the insurer to regularize the action by substituting the trustee as plaintiff.