Law360, New York (November 13, 2014, 10:19 AM EST) -- On Oct. 8, 2014, in St. Paul Mercury Ins. Co. v. Michael S. Hahn, et al., Case No. SACV 13-0424 AG (RNBx), a California district court ruled that St. Paul Mercury Ins. Co., referred to as Travelers, must defend former directors and officers of a defunct bank who were sued by the Federal Deposit Insurance Corporation — as the receiver for Pacific Coast National Bank — against claims of negligence and breaches of fiduciary duty. The district court rejected Travelers' reliance on the insured v. insured exclusion to escape coverage and, in the process, aligned itself with the majority of courts throughout the country that have held the exclusion does not unambiguously exclude from coverage lawsuits by the FDIC....