BNY Midwest Trust Co. v. National Union Fire Insurance

MEMORANDUM **

BNY Midwest Trust Company (“BNY’), as Indenture Trustee, filed a claim under Financial Institution Bond No. 473-9120 (“the bond” or “the fidelity bond”) issued by National Union Fire Insurance Company of Pittsburgh, PA (“National Union”) to recover losses allegedly suffered by RBA Dain Rauscher, Inc. (“RBA”) and Urfina Securities, S.A. (“Urfina”). National Union issued the fidelity bond to Travelers Receivable Finance LLC (“Travelers”) to cover losses suffered by Travelers caused by fraudulent or dishonest acts of Travelers’ employees. National Union denied the claim filed by BNY. BNY brought this lawsuit alleging that its security interest in the fidelity bond as described in the Indenture Agreement provided it with a right to file the claim and bring the present lawsuit. The district court granted the defendant’s motion for summary judgment and denied the plaintiffs’ motion for a new trial. We affirm both decisions.

1. The district court did not err in granting the defendant’s motion for summary judgment.

A grant of summary judgment is reviewed de novo. IlioUlaokalani Coalition v. Rumsfeld, 464 F.3d 1083, 1093 (9th Cir. 2006). Summary judgment is appropriate…