Federal Deposit Insurance Corp. v. Aetna Casualty and Surety Co‪.‬

Defendant-Appellant Aetna Casualty and Surety Company ("Aetna") appeals from a jury verdict awarding $3,000,000 in compensatory damages and $3,500,000 in punitive damages to plaintiff-appellee, Federal Deposit Insurance Corporation ("FDIC"). The action is premised upon Aetnas refusal to allow FDIC, as receiver for United Southern Bank of Nashville (USBN), to claim coverage under certain bankers blanket bonds. The Court finds that exclusion provisions in the bonds preclude the FDICs action and accordingly reverses.