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FARMERS BANK & TRUST, ETC. v. TRANSAMERICA INS.

No. 80-5486.

674 F.2d 548 (1982)

FARMERS BANK & TRUST COMPANY OF WINCHESTER, Tennessee, Plaintiff-Appellee, v. TRANSAMERICA INSURANCE COMPANY, Defendant-Appellant.

United States Court of Appeals, Sixth Circuit.

Decided March 29, 1982.

Rehearing Denied May 20, 1982.

Attorney(s) appearing for the Case

David L. Franklin, Anderson, Cleary & Cooper, William Luther, Chattanooga, Tenn., for defendant-appellant.

Robert S. Peters, Swafford, Davis & Peters, Winchester, Tenn., for plaintiff-appellee.

Before MERRITT and JONES, Circuit Judges, and TAYLOR, District Judge.

MERRITT, Circuit Judge.

In this diversity case from Tennessee, the defendant, Transamerica Insurance Company, appeals from a judgment of the District Court granting the plaintiff, Farmers Bank and Trust Company (Bank), recovery under a bankers blanket bond in the amount of $213,738. The bank's claim for recovery under the blanket bond arises out of a fraudulent sale-leaseback transaction for heavy earth-moving equipment which the bank financed. We do not agree with...

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