Fidelity Savings and Loan Association, a California Corporation v. Republic Insurance Company, a Corporation

Before CHOY and SNEED, Circuit Judges, and BEEKS, District Judge.

Fidelity Savings & Loan Association appeals from a judgment of dismissal with prejudice of its claim to recover litigation expenses from Republic Insurance Co., its indemnitor. We affirm.

Factual Background

Appellant instituted this action against two insurance companies who issued Standard Form 22 Savings and Loan Blanket Bonds for two savings and loan associations. Appellee Republic issued in favor of Fidelity a bond which was effective from August 1, 1962 through August 1, 1968. Fireman’s Fund, the other insurance company, issued to Trans-Bay Federal Savings & Loan Association a bond which on its face indicated an effective date of December 15, 1960, and a termination date of December 15, 1966. At no time was Trans-Bay insured under any Republic bond.

On March 1, 1966 Trans-Bay and Fidelity merged, and, as a result Fidelity succeeded to all the rights and assets as well as liabilities of Trans-Bay. Among the liabilities acquired by Fidelity were several law suits pending against Trans-Bay that were based on allegedly fraudulent acts committed by Trans-Bay employees before the merger. Fidelity, with…