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ADAIR STATE BANK v. AMERICAN CAS. OF READING, PA.

Nos. 89-5194, 89-5197, 90-5153.

949 F.2d 1067 (1991)

ADAIR STATE BANK, an Oklahoma Banking Corporation, Plaintiff-Appellee/Cross-Appellant, v. AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA, Defendant-Appellant/Cross-Appellee. ADAIR STATE BANK, an Oklahoma Banking Corporation, Plaintiff-Appellee, v. AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA, Defendant-Appellant.

United States Court of Appeals, Tenth Circuit.

November 25, 1991.

Attorney(s) appearing for the Case

Thomas H. Crouch of Meagher & Geer, Minneapolis, Minn. (Thomas M. Stieber and Charles H. Becker of Meagher & Geer, Minneapolis, Minn., and Michael Hill of Secrest & Hill, Tulsa, Okl., with him on the briefs), for defendant-appellant/cross-appellee.

Robert W. Nelson of Ramey, Nelson & Brown, Yukon, Okl. (David W. Edmonds and Brian Husted of Edmonds, Cole, Hargrave, Givens & Witzke, Oklahoma City, Okl., with him on the briefs), for plaintiff-appellee/cross-appellant.

Before McKAY, Chief Judge, LOGAN, Circuit Judge, and WINDER, District Judge.

McKAY, Chief Judge.

An insurer in this diversity action challenges the judgment of the United States District Court for the Northern District of Oklahoma awarding indemnity on an employee fidelity bond the insurer issued to a bank. The district court found that the bond covered the defalcation of the bank's chairman of the board. The insured cross-appeals the judgment of the district court in favor of the insurer on its claim that the insurer breached its duty of...

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