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ROCK RIVER SAV. & LOAN v. AMERICAN STATES INS.

No. 78-1457.

594 F.2d 633 (1979)

ROCK RIVER SAVINGS AND LOAN ASSOCIATION, an Illinois Corporation, Plaintiff, v. AMERICAN STATES INSURANCE COMPANY, an Indiana Corporation, Defendant and Third Party Plaintiff-Appellant, v. PEAT, MARWICK, MITCHELL & COMPANY, Donald E. Levinson, Dale L. Levinson, Kenneth Clausen, Floyd Palmquist and Richard Runstrom, Third Party Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided March 22, 1979.

Attorney(s) appearing for the Case

Gilbert J. Schroeder, Chicago, Ill., for appellant.

Robert D. McLean, Champ W. Davis, Jr., Chicago, Ill., for appellees.

Before TONE and BAUER, Circuit Judges, and WHELAN, Senior District Judge.

BAUER, Circuit Judge.

This appeal arises from a diversity action brought by the Rock River Savings and Loan Association against American States Insurance Company. The Association alleged that it had suffered a loss due to the fraudulent conduct of five of its former officers, and that this loss was compensable under a surety bond issued by American States. The insurance company subsequently joined as third party defendants the five former officers and the Association...

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