Iowa National Mutual Insurance Company, an Insurance Corporation v. City of Osawatomie, Kansas, a Kansas Municipal Corporation

MECHEM, District Judge.

This action is before this court by reason of diversity of citizenship. It initiated as a declaratory judgment action pursuant to 28 U.S.C. § 2201 by Iowa National Insurance Company, appellant, called the Company, against the City of Osawatomie, Kansas, appellee, called the City, to determine the Company’s liability to the City under a policy of fire and extended coverage insurance issued by the Company on January 1, 1966 insuring the City’s utility plant and its contents which were damaged by fire on July 8, 1967.

The Company made a settlement offer of $25,000 which was…