Insurance Company Of North America v. Gibralco, Inc.

847 F.2d 530 INSURANCE COMPANY OF NORTH AMERICA, Plaintiff-Counter-Defendant-Appellant, v. GIBRALCO, INC., Defendant, and Trustee for the Liquidation of Gibralco, Inc., Defendant-Counter-Claimant- Appellee. No. 86-6078. United States Court of Appeals, Ninth Circuit. Argued and Submitted Jan. 5, 1988. Decided May 23, 1988. William P. Gemmill, Los Angeles, Cal., for plaintiff-counter-defendant-appellant. Gregory Houle, Los Angeles, Cal., for defendant-counter-claimant-appellee. Appeal from the United States District Court for the Central District of California. Before CANBY and WIGGINS, Circuit Judges, and LOVELL, * District Judge. CANBY, Circuit Judge: 1 This case involves the interpretation of an exclusionary clause limiting recovery for trading losses under an insurance policy purchased by a municipal bond brokerage firm. Insurance Company of North America ("INA") appeals the district court's judgment awarding $3,313,667.66 1 to the Trustee for the broker Gibralco, Inc. 2 INA contends that the district court misinterpreted the pertinent provisions of the Bond. We affirm. BACKGROUND 2 On November 12, 1980, INA issued a Broker's Blanket Bond to Gibralco, Inc. Among other forms of…