Howard v. Fidelity & Deposit Co.

ROBERT M. PARKER, Circuit Judge:

The Appellants, Gene Howard and Commercial National Bank appeal the judgment of the bankruptcy court granting Appellee, Fidelity and Deposit Company of Maryland’s, motion for summary judgment as to its liability as surety for former trustee Jerry Bass. The Appellants contended that Bass failed to pursue preference actions before they prescribed causing financial’loss to the Appellants. The bankruptcy court based its ruling on two grounds: first, that Commercial National Bank gained possession of the right to pursue preference claims, and second, based on the…