Southgate Bank v. Fidelity & Deposit Co. of Md.

Elliott, J.:

Fidelity & Deposit Company of Maryland (F&D) and the law firm of Sloan, Listrom, Eisenbarth, Sloan & Glassman (Sloan) appeal from a jury verdict and trial court sanctions concerning plaintiff The Southgate Bank’s (Bank) blanket bond insurance coverage.

We affirm in part and reverse in part. The facts will be detailed only as necessary in deciding the issues presented by the appeal.

Kroh Brothers Development Corporation sought to borrow money from the Bank, which would have exceeded Bank’s lending limit. Instead, brothers George and John Kroh personally borrowed each with their wives…