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United States District Court for the Northern District of Alabama, Northeastern Division
June 4, 2015, Decided; June 4, 2015, Filed
[*1214] MEMORANDUM OPINION & ORDER
In this action removed from Alabama state court, Plaintiffs Worthington Federal Bank (the "Bank") and Worthington Financial Holdings, Inc. ("WFH") (collectively "Plaintiffs" or the "Companies") bring claims under Alabama law for breach of contract, the tort of bad faith, and for a declaratory judgment against Everest National Insurance Company ("Everest") and Security National Insurance Company ("Security National") (collectively "Defendants"). (See Doc.1 21, Amended Complaint (hereinafter "Complaint" or "Compl.")). The case was assigned the undersigned pursuant to the court's general order of reference [**2] dated January 14, 2013, and the parties have consented to an exercise of plenary jurisdiction by a magistrate judge under 28 U.S.C. § 636(c) and Fed. R. Civ. P. 73. (Doc. 31). The cause now comes to be heard on a motion for summary judgment filed by Security National (Doc. 35) and a motion for partial summary judgment filed by Everest. (Doc. 37). The parties have filed evidence and fully briefed their respective positions on the motions. (Docs. 36, 38, 40, 41, 42, 43). Upon consideration, the court concludes that Everest's motion for partial summary judgment is due to be denied and that Security National's motion for summary judgment is due to be granted in part, as it relates to its duty to advance defense expenses for an underlying action pending in state court.
For purposes [**3] of the instant summary judgment motions only, the parties have stipulated to the following facts (see Doc. 32 at 2-4):
1. Everest issued Directors & Officers Liability Policy Number 8100000269-121 for the policy period of December 14, 2012 to December 14, 2013 (the "Everest Policy").
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110 F. Supp. 3d 1211 *; 2015 U.S. Dist. LEXIS 85888 **
WORTHINGTON FEDERAL BANK and WORTHINGTON FINANCIAL HOLDINGS, INC., Plaintiffs, v. EVEREST NATIONAL INSURANCE COMPANY and SECURITY NATIONAL INSURANCE COMPANY, Defendants.
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