Universal City Studios Credit Union v. Cumis Insurance Society, Inc.

Plaintiff, a credit union, processed a fraudulent wire transfer request, sustaining a loss of around $243,700, and sought to recover its loss under a credit union bond issued by defendant, which declined to pay. The credit union filed this action, seeking to recover under the bond for its monetary loss and requesting an award of punitive damages.

The trial court granted summary judgment in favor of defendant, concluding that the credit union had not complied with the security procedures set forth in the bond. We agree with the trial court’s reasoning and affirm.

I

BACKGROUND

This court accepts as tme the following facts and reasonable inferences supported by the parties’ undisputed evidence on the motion for summary judgment. (See Raghavan v. Boeing Co. (2005) 133 Cal.App.4th 1120, 1125 [ 35 Cal.Rptr.3d 397 ].)

For more than 10 years, defendant CUMIS Insurance Society, Inc. (CUMIS), provided plaintiff Universal City Studios Credit Union (Credit Union) with annual credit union bond coverage. The Credit Union typically renewed its bond coverage in February of each year. The bond at issue was effective from February 2007 to February 2008 (February 2007 bond).

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