Altus Bank, a Federal Savings Bank v. State Farm Fire and Casualty Company

979 F.2d 854 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Altus BANK, a Federal Savings Bank, Plaintiff-Appellant, v. STATE FARM FIRE AND CASUALTY COMPANY, Defendant-Appellee. No. 91-55329. United States Court of Appeals, Ninth Circuit. Argued and Submitted Nov. 4, 1992. Decided Nov. 19, 1992. Before D.W. NELSON, CYNTHIA HOLCOMB HALL and RYMER, Circuit Judges. 1 MEMORANDUM * 2 Altus Bank appeals from an order granting summary judgment in favor of State Farm in an action arising from State Farm's refusal to pay the bank's claim under a fire insurance policy. Altus Bank's complaint alleged breach of contract, breach of the covenant of good faith and fair dealing, and fraud, and requested that a trustee's sale of the insured property be set aside. State Farm refused to pay on the claim on the ground that Altus, the mortgagee of the insured property, made a "full-credit" bid at a foreclosure sale of the property, thereby extinguishing its claim under the insurance policy.…