Zandstra

MEMORANDUM OF DECISION AND ORDER

This is an action for declaratory relief, brought by a Maryland insurance company, Fidelity and Deposit Company of Maryland (“Fidelity”), which seeks a declaration that it has no duty to defend or indemnify the defendants, John Zandstra, Robert Seder-strom, Jr. and Richard Webster (collectively, “the Zandstra defendants”), citizens of California and Washington, against two actions originally brought against them by Homestate Savings and Loan Association (“Homestate”) and now being maintained by the Federal Deposit Insurance Corporation (“FDIC”). FDIC has been granted leave to intervene as a defendant. Jurisdiction is based upon diversity and upon 12 U.S.C. § 1819 (b)(2) as amended by Pub.L. 101-73 § 209 (b)(2), 103 Stat. 183 at 216-17.

Fidelity issued a directors’ and officers’ liability policy (the “D & O policy”) to Homestate. Zandstra, Sederstrom, and Webster are former officers and/or directors of Homestate. They are named in two actions originally brought by Homes-tate. They have tendered the defense of these actions to Fidelity; Fidelity has refused to defend, and brought this action.

Fidelity now moves for summary judgment on the basis of…