FIRST STATE BANK OF MONTICELLO v. OHIO CAS. INS. CO.

Nos. 06-3685, 06-3794.

555 F.3d 564 (2009)

FIRST STATE BANK OF MONTICELLO, Plaintiff-Appellee, Cross-Appellant, v. OHIO CASUALTY INSURANCE COMPANY, Defendant-Appellant, Cross-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided February 5, 2009.


Attorney(s) appearing for the Case

Tracy C. Litzinger (argued), Jeffrey G. Sorenson, Howard & Howard, Peoria, IL, for Plaintiff-Appellee, Cross-Appellant.

Edward M. Kay, Chip G. Schoneberger (argued), Clausen Miller PC, Chicago, IL, for Defendant-Appellant, Cross-Appellee.

Before WOOD, SYKES, and TINDER, Circuit Judges.


SYKES, Circuit Judge.

This insurance-coverage dispute arises from a fraudulent scheme perpetrated against First State Bank of Monticello causing a $307,000 loss. James Stilwell repeatedly exchanged bad checks for the bank's money orders—instruments backed by the resources of the bank and as good as cash. The bank filed a claim for the loss with its insurer, Ohio Casualty Insurance Company, under a Standard Form No. 24 Financial Institution Bond. Ohio Casualty...

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