McCullough v. Fidelity & Deposit Co.
Fifth Circuit Court of Appeals
2 F.3d 110 (1993)
Fidelity and Deposit Company of Maryland (F & D) (defendant) issued directors’ and officers’ (D & O) liability policies to an affiliate bank and its subsidiary banks. The policy covered claims against directors and officers, provided written notice of claims or potential claims was given to the insurer during the policy period. The insured banks provided F & D with financial reports describing significant loan losses and a worsening financial condition, and making reference to the issuance of a cease and desist order to one of the subsidiary banks by its primary regulator. F & D canceled the banks’ insurance policies. The banks were later declared insolvent. The Federal Deposit Insurance Corporation (FDIC) was declared as receiver, and sued the banks’ directors and officers for improperly making or collecting loans. F & D denied insurance coverage to the directors and officers. FDIC filed a declaratory judgment action against F & D, asking the court to determine whether F & D must provide coverage under the D & O liability policies. The district court found that there was no coverage under the policies because F & D did not receive written notice of any potential claims during the policy period, and granted summary judgment for F & D. FDIC appealed.
Rule of Law
Holding and Reasoning (Davis, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 175,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.