Resolution Trust Corp. v. Continental Casualty Co.

MEMORANDUM AND ORDER

THEIS, District Judge.

First Federal Savings Bank of Newton, Kansas (“First Federal”) brought this action against defendant Continental Casualty Company, seeking a declaration that certain losses incurred by it on two construction loans are covered under a savings and loan blanket bond issued to First Federal by the defendant. The loans in question were issued by First Federal’s wholly-owned subsidiary, Construction Mortgage Corporation (“CMC”), an additional insured under the bond. The borrower, Edgewater Management, Inc. (“EMI”), a developer of condominiums in Winter…