Employers Insurance of Wausau v. Doonan

MEMORANDUM OPINION

MIHM, District Judge.

At issue is whether an insurance company has a right of subrogation against bank officers or directors for conduct greater than mere negligence but not rising to the level of fraud, bad faith, personal benefit or actual knowledge.

Previously this Court applied the reasoning of two state courts in determining that no right of subrogation exists for mere negligence. First National Bank of Columbus v. Hansen, 84 Wis.2d 422, 267 N.W.2d 367 (1978); Dixie National Bank of Dade County v. Employers Commercial Union Insurance Company of America, 463 So.2d 1147…