Logourl black

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

The rule of law is the black letter law upon which the court rested its decision. To access this section, start your 7-day free trial of Quimbee for Law Students.


The issue section includes the dispositive legal issue in the case phrased as a question. To access this section, start your 7-day free trial of Quimbee for Law Students.

Holding and Reasoning (Davis, J.)

The holding and reasoning section includes:

  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, start your 7-day free trial of Quimbee for Law Students.

Here's why 90,000 law students rely on our case briefs:

  • Reliable - written by law professors and practitioners not other law students.
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your class - works on your mobile and tablet.
  • 12,195 briefs - keyed to 164 casebooks.
  • Uniform format for every case brief.
  • Written in plain English - not in legalese and not just repeating the court's language.
  • Massive library of related video lessons - and practice questions.
  • Ability to tag case briefs in an outlining tool.
  • Top-notch customer support.
Start Your Free Trial Now