American Manufacturing Mutual Insurance v. Tison Hog Market, Inc.

COX, Circuit Judge:

Plaintiff American Manufacturing Mutual Insurance Company (“American”) filed this action seeking a declaratory judgment that it was not liable to the defendant creditors on two surety bonds. The district court entered summary judgment in American’s favor and the defendants appeal. For the reasons that follow, we vacate and remand.

I. Background

The Packers and Stockyards Act of 1921, 7 U.S.C. § 181 et seq., (the “PSA”) and its implementing regulations require that every livestock dealer execute and maintain a reasonable bond to secure the performance of its obligations. See 7…