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FDIC v. AETNA CAS. AND SUR. CO.

No. 89-5866.

903 F.2d 1073 (1990)

FEDERAL DEPOSIT INSURANCE CORPORATION, in its separate corporate capacity, Plaintiff-Appellee, v. AETNA CASUALTY AND SURETY COMPANY, Defendant-Appellant.

United States Court of Appeals, Sixth Circuit.

Decided May 24, 1990.

Attorney(s) appearing for the Case

Deborah C. Stevens, G.W. Morton, Jr. (argued), Judith A. DePrisco, Ellis A. Sharp, John K. King, M. Edward Owens, Jr., Kelly S. Atkins, Gerald L. Gulley, Jr., Morton, Lewis, King & Krieg, Knoxville, Tenn., and Reba Brown, Morton, Lewis, King & Krieg, Nashville, Tenn., for plaintiff-appellee.

Gerard M. Siciliano, Samuel L. Akers, William B. Luther, Phillip J. Parsons, Steven S. Usary, Luther, Anderson, Cleary, Ruth & Speed, Chattanooga, Tenn., Richard J. Phelan (argued), William T. Cahill, Chicago, Ill., and Larry L. Simms (argued), Gibson, Dunn & Crutcher, Washington, D.C., for defendant-appellant.

David L. Buuck, Clairborne, Davis, Buuck & Hurley, Knoxville, Tenn., for defendant.

Before KRUPANSKY and NORRIS, Circuit Judges, and BELL, District Judge.

ROBERT HOLMES BELL, District Judge.

Defendant-Appellant Aetna Casualty and Surety Company ("Aetna") appeals from a jury verdict awarding $3,000,000 in compensatory damages and $3,500,000 in punitive damages to plaintiff-appellee, Federal Deposit Insurance Corporation ("FDIC"). The action is premised upon Aetna's refusal to allow FDIC, as receiver for United Southern Bank of Nashville (USBN), to claim coverage under certain bankers blanket bonds. The Court finds that...

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