Hartford Insurance Group v. Citizens Fidelity Bank & Trust Co.

WHITE, Judge.

This is an appeal from a summary judgment for Citizens Fidelity Bank and Trust Company based on a claim that Citizens was a holder in due course of a draft issued by appellant Hartford. The issue before us is whether Citizens was entitled to summary judgment.

On April 28, 1977, appellant Hartford Insurance Group issued a draft in the amount of $7,073.80 payable to one Kastlehun for damage to his home insured by Hartford. Apparently unnoticed by Hartford, the premises were subject to a first mortgage held by Southeast Federal Savings and Loan Association. Hartford alleged in its…