Bank of Carbondale v. Kansas Bankers Surety Co.

The plaintiff, the Bank of Carbondale (the Bank), filed a complaint in the circuit court of Jackson County against Leonard Bening and alleged that Bening had failed to pay certain promissory notes. Bening filed a counterclaim alleging, inter alla, that the Bank, acting through its officers and/or directors, altered the notes. The counterclaim named the Bank as a defendant but did not name any officer or director. The defendant, the Kansas Bankers Surety Company (KBS), had issued to the Bank an insurance policy entitled “Director and Officer Legal Defense and Limited Indemnity Policy.” The…