Burnhope v. National Mortgage Equity Corp.

This action for declaratory judgment was filed by a group of underwriters and insurance companies (collectively referred to as Lloyd’s London or plaintiffs). They seek a determination that defendants National Mortgage Equity Corporation (NMEC) and David A. Feldman, NMEC’s president and majority shareholder, are not entitled to fidelity insurance coverage pursuant to certain “finance company blanket bonds.” Alternatively, plaintiffs seek a declaration that if coverage under the bonds exists, defendant Arthur J. Gallagher & Co. is liable to and must indemnify plaintiffs for whatever amounts…