Federal Deposit Insurance v. RLI Insurance

MEMORANDUM OPINION AND ORDER

Milton I. Shadur, Senior United States District Judge

This case presents an insurance dispute between Federal Deposit Insurance Corporation (“FDIC”), as receiver for Park National Bank (“Park National”), and RLI Insurance Company (“RLI”). FDIC suffered losses stemming from loans that were purportedly collateralized by equipment leases—leases that ultimately proved to contain forged signatures and were therefore worthless. FDIC unsuccessfully sought reimbursement for those losses under a financial institution bond (“the Bond”) issued by RLI and, after RLI denied that…