Baldwin-United Corp. v. Garner – Case Brief Summary (Arkansas)

In Baldwin-United Corp. v Garner (283 Ark. 385, 678 S.W.2d 754 [1984]), the Arkansas Supreme Court enjoined claims against subsidiaries of an insurance company undergoing state rehabilitation, holding that the purpose of the act "was to preserve intact from any federal intrusion, existing and future state regulation of the insurance industry subject only to the exceptions expressly provided . . . [and since] the Bankruptcy Act does not specifically relate to the business of insurance . . . appellants cannot pursue their claims under the Bankruptcy Act once enjoined by a valid state injunction" (283 Ark. at 392-393, 678 S.W.2d at 757-758).

The court concluded that if "any meaning is to be given to the . . . mandate of the . . . Act, it must be that the determination of rights among an insurance company's creditors must be left to state proceedings" (283 Ark. at 393, 678 S.W.2d at 758.)