Federal Deposit Insurance Corp. v. Barham

EMILIO M. GARZA, Circuit Judge:

The Federal Deposit Insurance Corporation (“FDIC”) brought suit against certain former directors and officers of First National Bank of Ruston (“FNBR”), alleging that the directors had breached their fiduciary duty by authorizing imprudent loans. The directors subsequently filed suit against their insurer, Federal Insurance Company (“Federal”), claiming that Federal had to pay any losses resulting from the FDIC’s claims. The district court granted summary judgment for Federal on the issue of insurance coverage. Finding no error, we affirm.

I

In April 1986, the…