North Iowa State Bank v. Allied Mutual Insurance Co.

SCHULTZ, Justice.

Plaintiff, North Iowa State Bank (bank), incurred liability when borrowers, the Kloosters, recovered a judgment against the bank. See Klooster v. North Iowa State Bank, 404 N.W.2d 564 (Iowa 1987). The bank commenced the present action against its liability insurance carrier, defendant Allied Mutual Insurance Company (Allied), seeking reimbursement of the amount of settlement it paid to discharge the judgment, attorney fees incurred in a prior declaratory judgment action, and punitive damages. Following trial to the court, plaintiff’s petition was dismissed and judgment…