Chartis Freed From Funding Fidelity's Overdraft Fee Deal

Law360, New York (August 7, 2013, 6:00 PM EDT) -- Chartis Specialty Insurance Co. on Wednesday escaped covering banking company Fidelity Southern Corp.'s $1 million settlement of a putative class action over overdraft fees, convincing a Georgia federal judge that the deal was uninsurable because it amounted to restitution.

Tossing Fidelity's suit, U.S. District Judge Richard Story agreed with Chartis that allowing insurance coverage under a management and professional liability for financial institutions policy for Fidelity's settlement would be improper because it would hand the bank a "windfall."

While no Georgia cases have tackled that precise...
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