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FEDERAL DEPOSIT INS. CORP. v. RELIANCE INS. CORP.

Civ. A. No. 88-192.

716 F.Supp. 1001 (1989)

FEDERAL DEPOSIT INSURANCE CORPORATION, Plaintiff, v. RELIANCE INSURANCE CORPORATION, Defendant.

United States District Court, E.D. Kentucky, Ashland Division.

August 7, 1989.

Attorney(s) appearing for the Case

Richard A. Getty, Sam P. Burchett, Frost & Jacobs, Lexington, Ky., and David C. Horn, Frost & Jacobs, Cincinnati, Ohio, for plaintiff.

James W. Smirz, Landrum & Shouse, Lexington, Ky. and Steven Z. Kaplan, Hart, Bruner & O'Brien, Minneapolis, Minn., for defendant.

MEMORANDUM

SILER, Chief Judge.

This matter comes before the Court upon defendant's motion for summary judgment, and motion for partial summary judgment. Plaintiff FDIC seeks recovery under a bank's blanket bond policy for losses sustained from a fraudulent loan scheme perpetrated by the bank's president ("Ruley") and a loan officer ("Knipp"). Loans were made to Chris Crowe Co. and Grayson Pallet Co., related entities which operated (and were to eventually...

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