Fireman's Fund Insurance v. National Bank for Cooperatives

ORDER

INTRODUCTION

The following motions are before the court: (1) Fireman’s Fund’s motion for summary judgment on its complaint and partial summary judgment on CoBank’s counterclaim; (2) Federal Insurance Company’s motion for summary judgment on its complaint and partial summary judgment on CoBank’s counterclaim; (3) Interstate’s motion for summary judgment; (4) CoBank’s motion for partial summary judgment against Fireman’s Fund.

For the reasons explained below: (1) Fireman’s Fund’s, Federal’s, and Interstate’s motions are GRANTED; and (2) CoBank’s motion is DENIED.

BACKGROUND

Fireman’s Fund commenced this action against National Bank for Cooperatives, successor-in-interest to the Texas Bank for Cooperatives (hereinafter “CoBank”), seeking declaratory relief to determine whether it is obligated to pay an arbitration award in favor of CoBank against its policyholder, a dissolved corporation known as XLS, Inc., the successor-in-interest to Lawrence Systems, Inc. Three insurance companies intervened. Those companies are Interstate, National Union, and Federal. CoBank filed a counterclaim'.

In 1986, Lawrence Systems entered a Certified Inventory Control Service agreement…