Southern Security Federal Credit Union v. Cumis Insurance Society, Inc.

In this appeal, we are called upon to review the trial court’s order entering summary judgment in favor of the bank. After one of its customers deposited a counterfeit check into its account at the bank, the bank filed a claim with its insurance company to recover for its loss under a bond.  Specifically, the bank sought coverage under two provisions in the bond. The bank filed its first motion for summary judgment on one of the bond’s provisions. The insurance company responded by agreeing that, for purposes of ruling on the motion for summary judgment, the bank’s customer intended to commit a fraud when he deposited the check. By doing so, the insurance company sought to trigger an exclusion provision in the bond. Thereafter, the bank filed a second motion for summary judgment on the other provision in the bond. In response, the insurance company, in an effort to create a disputed issue of material fact as to this provision, asserted that the customer did not intended to commit fraud when he deposited the check. The trial court granted the bank’s motions for summary judgment. In regards to the bank’s motions for summary judgment, we reverse the trial court’s award of summary judgment to the bank and find that genuine issues of material fact remain to be decided, therefore, summary judgment is inappropriate.