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F.D.I.C. v. INSURANCE CO. OF NORTH AMERICA

Nos. 96-1556, 96-1557.

105 F.3d 778 (1997)

FEDERAL DEPOSIT INSURANCE CORPORATION as Receiver for the Bank For Savings, Plaintiff, Appellant, v. INSURANCE COMPANY OF NORTH AMERICA, Defendant, Appellee/Third-Party Plaintiff, Appellant, v. Paul J. BONAIUTO and Dolores DiCologero, Third-Party Defendants, Appellees.

United States Court of Appeals, First Circuit.

Decided February 3, 1997.

Attorney(s) appearing for the Case

Eugene J. Comey, with whom Robert D. Luskin, Comey Boyd & Luskin, Ann S. DuRoss, Assistant General Counsel, F.D.I.C., Thomas L. Hindes, Counsel, E. Whitney Drake, Special Counsel, and Leslie Ann Conover, Senior Attorney, were on brief, Washington, D.C., for FDIC.

Gerald W. Motejunas, with whom Marie Cheung-Truslow and Lecomte, Emanuelson, Motejunas & Doyle were on brief, Quincy, MA, for Insurance Company of North America.

Before SELYA, Circuit Judge, CYR, Circuit Judge, and LYNCH, Circuit Judge.

LYNCH, Circuit Judge.

In 1977 the Massachusetts legislature enacted a statute, Mass.Gen.Laws ch. 175, § 112, which provided that, for certain types of liability insurance, the Commonwealth would adopt a "notice prejudice" rule. This new statutory rule departed from the traditional common law rule which had strictly enforced notice provisions in insurance policies, allowing forfeiture of coverage where notice to an insurer of a claim was late. The Supreme Judicial...

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