Keating

REVISED ORDER RE SUMMARY JUDGMENT

INTRODUCTION

The plaintiffs-counterdefendants in these consolidated actions (hereinafter “Keat-ing”) are directors and/or officers of Lincoln Savings and Loan Association (“Lincoln”) and/or American Continental Corporation (“ACC”). Each is currently named as a defendant in, among others, Sarah B. Shields, et al. v. Charles H. Keating, Jr., et al., (Central District of California case number CV 89-2052 SVW) and Yahr, et al. v. Lincoln Savings and Loan Association, et al., (Los Angeles County Superior Court case number NWC 51500). The plaintiffs in Shields and Yahr allege, inter alia, that the defendants therein perpetrated a scheme whereby corporate bonds of ACC were fraudulently sold to Lincoln customers. The fraud consisted of alleged misrepresentations that the bonds were backed by the full faith and credit of the United States Government, when, in fact, they were not.

Defendant-counterclaimant National Union Fire Insurance Company of Pittsburgh (“National Union”) entered into a number of written contracts with ACC whereby National Union agreed to provide liability insurance for ACC. Policy GLA 9605142 provided primary liability insurance for…