First Alabama Bank of Montgomery, N.A. v. First State Insurance Co‪.‬

ESCHBACH, Senior Circuit Judge: Defendants-Appellants First State Insurance Company (""First State""), Cameron and Colby Company, Inc. (""Cameron & Colby""), and Johnson & Higgins appeal from the trial court's award of compensatory and punitive damages in favor of plaintiff-appellee First Alabama Bank (""First Alabama"") in a diversity action for fraud and breach of contract.1 Plaintiff filed this diversity action in federal district court against First State2 seeking both to recover on a bank trust department errors and omissions (""E & O"") insurance policy and to recover damages for fraud. First Alabama also sued Johnson & Higgins in both tort and contract for failure to provide expertise and skill as plaintiff's exclusive insurance broker in the procurement of E & O insurance and for fraud.