First National Insurance Co. of America v. Federal Deposit Insurance
Opinion
Opinion
Brewster, J.
ORDER REGARDING COURT’S ORDER TO SHOW CAUSE HEARING
This matter came on regularly for hearing on the Court’s order for defendant to show cause why it should not be required to retain independent counsel to represent the reeeivership estate. After careful consideration of the papers filed by both parties, the Court hereby declines to order the retention of independent counsel.
I. Statement of Facts
First National, plaintiff in this action, issued an insurance policy to Imperial Savings (“Imperial”), American Savings & Loan Association, and ICA Mortgage Corporation. This umbrella policy covered all real property on which Imperial was a mortgagee. General Accident Insurance Co. (“General”) issued a builders risk commercial fire policy covering the El Cajon Garden Apartments on which Imperial was listed as the mortgagee. The General and First National policy limits were $8 million and $1 million, respectively. In June of 1990, the federal government determined that Imperial was in unsound condition and appointed the Resolution Trust Corporation (“RTC”) as receiver for Imperial. The FDIC, as the successor to the RTC, is the defendant in this action.