Allstate v. Varkonyi, et al

*Local Rule 47.5 provides: "The publication of opinions that
have no precedential value and merely decide particular cases on
the basis of well-settled principles of law imposes needless
expense on the public and burdens on the legal profession."
Pursuant to that Rule, the Court has determined that this opinion
should not be published.
IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT
No. 95-50541
Summary Calendar
THOMAS VARKONYI d/b/a
METAL RECYCLING COMPANY and
UNIQUE PRODUCTS INTERNATIONAL, Appellant,
versus
ANDREW B. KRAFSUR, Chapter 7 Trustee, Appellee,
versus
ALLSTATE INSURANCE CO., Appellee.
Appeal from the United States District Court
for the Western District of Texas
(EP-93-CV-441)
May 15, 1996
Before HIGGINBOTHAM, DUHE’, and EMILIO M. GARZA, Circuit Judges.
PER CURIAM:*
Allstate Insurance Company filed this interpleader action
against Thomas Varkonyi, d/b/a Metal Recycling Company and Unique
Products International, a Chapter 7 debtor, and Andrew Krafsur, the

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Chapter 7 trustee. Allstate sought to resolve the adverse claims
of Varkonyi and Krafsur as trustee to insurance proceeds arising
from the claimed loss of Varkonyi's Lincoln Mark VII, which he had
reported stolen. Allstate also sought a declaratory judgment that
it was justified in delaying payment of proceeds. Prior to the
bench trial, the parties agreed on a distribution of the insurance
proceeds. After the trial on the declaratory judgment action, the
bankruptcy court ruled that Allstate had no further liability to
Varkonyi; it concluded that, given the circumstances of Varkonyi's
arrest and indictment on insurance fraud charges in connection with
his Lincoln Mark VII, Allstate had not wrongfully delayed payment
of the proceeds. The district court affirmed.
Varkonyi now appeals, arguing that the district court erred in
affirming the decision of the bankruptcy court. He contends, inter
alia, that the bankruptcy court judge should have disqualified
himself; that Allstate brought the interpleader action for an
improper purpose; and that the judgment is inconsistent in failing
to clarify certain issues that may arise in Varkonyi's state court
litigation against Allstate. We have reviewed the record and the
memoranda of the lower courts and find no reversible error.
AFFIRMED.

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