{"id":229,"date":"2013-06-04T04:43:15","date_gmt":"2013-06-04T04:43:15","guid":{"rendered":"http:\/\/www.joneslemongraham.com\/blog\/?p=229"},"modified":"2021-12-21T20:05:41","modified_gmt":"2021-12-21T20:05:41","slug":"claim-fell-within-policys-based-on-lending-services-exclusion-so-do-insurer-had-no-duty-to-defend-bank-in-fraud-case","status":"publish","type":"post","link":"https:\/\/www.joneslemongraham.com\/blog\/claim-fell-within-policys-based-on-lending-services-exclusion-so-do-insurer-had-no-duty-to-defend-bank-in-fraud-case\/","title":{"rendered":"Claim fell within Policy\u2019s \u201cLending Services\u201d exclusion so D&#038;O insurer had no duty to defend Bank in fraud case"},"content":{"rendered":"<p>by <a href=\"http:\/\/www.joneslemongraham.com\/attorneys.html?Attorney=Graham\">Chris Graham<\/a> and <a href=\"http:\/\/www.joneslemongraham.com\/attorneys.html?Attorney=Kelly\">Joseph Kelly<\/a><\/p>\n<p><a href=\"http:\/\/scholar.google.com\/scholar_case?case=9676666246570257463&amp;hl=en&amp;lr=lang_en&amp;as_sdt=2,14&amp;as_vis=1&amp;oi=scholaralrt\">Western Heritage Bank f\/k\/a Mesilla Valley Bank, et al v. Federal Ins. Co., Case No. CV 11-0630 MV\/WPL (D. N.M. March 21, 2013)<\/a><\/p>\n<p>D&amp;O insurer, Federal, received a summary judgment; Federal had no duty to defend Bank in suit against Bank for fraudulently placing deeds of trust and liens on property to secure Bank loans and wrongfully refusing to release the liens.<\/p>\n<p>The policy\u2019s Lending Services exclusion provided that Federal &#8220;shall not be liable for Loss on account of any Claim: . . . based upon, arising from, or in consequence of the performing or failure to perform . . . Lending Services.&#8221;<\/p>\n<p>&#8220;Lending Services&#8221; were defined as: \u201cany act performed by an Insured for a Lending Customer of the Organization in the course of extending or refusing to extend credit or granting or refusing to grant a loan or any transaction in the nature of a loan, including any act of restructure, termination, transfer, repossession or foreclosure.\u201d<\/p>\n<p>Under New Mexico law interpreting exclusions \u201carising out of\u201d is broad and means \u201coriginating from,\u201d \u201chaving its origin in,\u201d \u201cgrowing out of\u201d or \u201cflowing from.\u201d Here, the Bank\u2019s placing of liens on the property and its subsequent refusal to remove them was a direct result of the Bank\u2019s lending services and activities, and coverage thus was excluded.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>by Chris Graham and Joseph Kelly Western Heritage Bank f\/k\/a Mesilla Valley Bank, et al v. Federal Ins. Co., Case No. CV 11-0630 MV\/WPL (D. N.M. March 21, 2013) D&amp;O insurer, Federal, received a summary judgment; Federal had no duty to defend Bank in suit against Bank for fraudulently placing deeds of trust and liens [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts\/229"}],"collection":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/comments?post=229"}],"version-history":[{"count":4,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts\/229\/revisions"}],"predecessor-version":[{"id":3214,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts\/229\/revisions\/3214"}],"wp:attachment":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/media?parent=229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/categories?post=229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/tags?post=229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}