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NORTH IOWA STATE BANK v. ALLIED MUT.

No. 90-268.

471 N.W.2d 824 (1991)

NORTH IOWA STATE BANK, Appellant, v. ALLIED MUTUAL INSURANCE COMPANY, Formerly Aid Insurance Company, Appellee.

Supreme Court of Iowa.

As Corrected June 26, 1991.

Attorney(s) appearing for the Case

H.P. Folkers, Mason City, and Robert M. Austin and Jerome B. Abrams, Minneapolis, Minn., for appellant.

Marsha Ternus of Bradshaw, Fowler, Proctor & Fairgrave, Des Moines, for appellee.

Considered by HARRIS, P.J., and LARSON, SCHULTZ, NEUMAN and ANDREASEN, JJ.

SCHULTZ, Justice.

Plaintiff, North Iowa State Bank (bank), incurred liability when borrowers, the Kloosters, recovered a judgment against the bank. See Klooster v. North Iowa State Bank, 404 N.W.2d 564 (Iowa 1987). The bank commenced the present action against its liability insurance carrier, defendant Allied Mutual Insurance Company (Allied), seeking reimbursement of the amount of settlement it paid to discharge the judgment...

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