Mccullough v. Fidelity & Deposit Co.

2 F.3d 110 (5th Cir. 1993)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

The Fidelity and Deposit Co. (D) issued four director and officer liability policies to four affiliate banks. The policy covers claims made against insured officers and directors if the required notice is given to the insurer during the policy period. Banks covered by the policy were declared insolvent, and the FDIC (P) was appointed receiver. P sued the banks' directors and officers for improperly and illegally making, administrating, and collecting loans. D denied coverage under the policies and the P sued seeking declaratory relief. The district court found no coverage under D's policy and granted summary judgment to D. The court found that P had failed to show that D received written notice of a potential claim under § 6(a)(2) of the policy, and on reconsideration it entered final judgment for D. P timely appealed. D contends that the policy requires the bank to notify it of 'specified Wrongful Acts' of directors and officers having claim potential. P argues that the notice can be in the broader form of 'any act, error or omission' which may give rise to a claim for specified wrongful acts.