FCL Fidelity Blog

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Chris McKibbin

About Chris McKibbin

As the only lawyer in Canada whose practice focuses primarily on fidelity insurance, Chris McKibbin has provided nearly 18 years of quality service and excellent results for virtually every fidelity insurer. He has been involved in most of the significant litigated fidelity coverage disputes in Canada since 2003, including complex coverage disputes involving fidelity policies, financial institution bonds and cyber policies arising from employee fraud, forgery of negotiable instruments, computer and funds transfer fraud and social engineering fraud. Chris also maintains a busy fraud recovery practice on behalf of both fidelity insurers and corporate clients.

Bank of Brewton: Eleventh Circuit affirms Financial Institution Bond’s Distinction between Counterfeit Documents and Fraudulently-Procured, but Authentic, Documents

On February 9, 2015, the Eleventh Circuit Court of Appeals released its decision in Bank of Brewton v. The Travelers Companies, Inc. The Court’s decision reinforces the distinction between counterfeit documents and documents which, although fraudulently-procured and without intrinsic value, are nonetheless authentic. The Facts The Bank of Brewton (the “Bank”) is a private bank located in Alabama. Its customer, Hines, obtained a series of loans for which he pledged various assets as collateral. In 2005, Hines assigned 180 shares of The Securance Group (“TSG”) as collateral for a loan, and delivered to the Bank a share certificate representing these

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KeyBank: New York Appellate Division denies Summary Judgment in Mortgage Lien Release case due to Material Issues of Fact as to Bank Employee’s Intent

On January 22, 2015, the New York Supreme Court, Appellate Division, released its decision in KeyBank National Association v. National Union Fire Insurance Company of Pittsburgh, Pa. The decision highlights the difficulties which sometimes arise in assessing manifest intent in financial institution losses. The Facts The insured, KeyBank, loaned a developer some $20 million for a condominium project. The loan was secured by, inter alia, mortgage liens on the condominium units. As individual condo units were sold, a percentage of the proceeds was to be used to pay down the loan, and to release the liens on those individual units.

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Pestmaster: U.S. District Court affirms Fidelity Insurer’s Intent on Scope of Computer Fraud and Funds Transfer Fraud Coverages

In Pestmaster Services, Inc. v. Travelers Casualty and Surety Company of America, the U.S. District Court for the Central District of California granted partial summary judgment in favour of Travelers on a claim advanced under its Computer Fraud and Funds Transfer Fraud coverages.  The decision provides valuable guidance regarding the scope of these coverages. The Facts Pestmaster, a pest control business, was insured under a Travelers Wrap+ policy.  In 2009, Pestmaster hired a payroll company, Priority, to handle its payroll and payroll tax obligations.  Pestmaster executed an ACH authorization which authorized Priority to obtain payment of Priority’s approved invoices by

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