CITIZENS FIRST NAT. BANK v. CINCINNATI INS. CO.

Nos. 98-3534, 98-3535, 98-3957.

200 F.3d 1102 (2000)

CITIZENS FIRST NATIONAL BANK OF PRINCETON, a nationally chartered bank, Plaintiff-Appellee, v. CINCINNATI INSURANCE COMPANY, an Ohio corporation, Defendant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided January 14, 2000.


Attorney(s) appearing for the Case

Barry S. Alberts (argued), Schiff, Hardin & Waite, Chicago, IL, for Plaintiff-Appellee.

Victor C. Peters (argued), Hanson & Peters, Chicago, IL, for Defendant-Appellant.

Before COFFEY, MANION, and EVANS, Circuit Judges.


TERENCE T. EVANS, Circuit Judge.

When the Cincinnati Insurance Company sold a directors and officers liability policy to Citizens Bank covering breaches of fiduciary duty in the rural bank's tiny trust department, it probably seemed like a safe bet that the bank would never make a claim approaching the policy's $5 million limit. The odds changed dramatically, however, when Citizens' trust officer, without fully understanding the risks involved, began investing the...

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