BANK OF CALIFORNIA, N. A. v. OPIE

No. 80-3157.

663 F.2d 977 (1981)

BANK OF CALIFORNIA, N. A., Plaintiff/Appellee, v. W. H. OPIE, et al., Defendants, California Union Insurance Company, Defendant/Appellant.

United States Court of Appeals, Ninth Circuit.

Decided December 14, 1981.


Attorney(s) appearing for the Case

Edward S. Winskill, Davies, Pearson, Anderson, Seinfeld, Gadbow, Hayes & Johnson, P. S., Tacoma, Wash., for defendant/appellant.

Stephen P. Ryder, Thom, Navoni, Hoff, Pierson & Ryder, Seattle, Wash., for plaintiff/appellee.

Before PREGERSON and BOOCHEVER, Circuit Judges and KELLAM, District Judge.


BOOCHEVER, Circuit Judge:

This case concerns the liability of an errors-and-omission insurer of a mortgage banking corporation for losses due to the corporation's failure to apply properly the proceeds of loans secured for its normal business purposes from a commercial bank.

W.H. Opie & Company (Opie) borrowed money from the Bank of California (Bank) for operating expenses in connection with its mortgage-banking business, but violated the loan agreement...

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