Bank of Cumberland v. Aetna Casualty and Surety Company, and Third Party Myrtle S. Blakley, of the Estate of Alton E. Blakley, Deceased, Third Party

SUHRHEINRICH, Circuit Judge.

Defendant Aetna Casualty and Surety Company (“Aetna”), appeals the jury verdict for plaintiff, Bank of Cumberland (“BOC”), in this diversity insurance action. Specifically, Aetna argues that the district court erred in failing to grant Aetna's motion for judgment notwithstanding the verdict (“JNOV”). For the reasons that follow, the judgment entered below is REVERSED.

I

C.H. Butcher, Jr. owned a large number of banks throughout Kentucky and Tennessee (collectively “Butcher Banks”). In 1981, he and Alton E. Blakley purchased equal shares in BOC. Blakley became…