The defendant insurer moved for summary judgment dismissing a claim brought by an investor seeking indemnification under a Financial Institution Bond issued to a corporation.
The plaintiff alleged that fraudulent conduct associated with an investment scheme triggered fidelity coverage under the bond.
The court held that the claim was barred by issue estoppel arising from prior Divisional Court findings that the insured corporation had not suffered a fidelity loss and could not be defrauded by its sole directing mind.
The bond provided first‑party indemnity only to the named insured and required discovery, notice, and proof of loss within specified time limits, none of which were satisfied.
The court concluded there was no genuine issue requiring trial and that the plaintiff’s claim could not succeed as a matter of law.
