CUNA Mutual Not Party To NCUA/WesCorp Dispute
An item in the Jan. 24 Credit Union Journal Daily Briefing incorrectly reported the arguments being made in court filings related to D&O liability insurance coverage for former executives of Western Corporate FCU.
The former WesCorp executives have filed a counterclaim for indemnification in the lawsuit, and are arguing that NCUA, in its role as liquidating agent for WesCorp, is obligated to indemnify them and pay their attorney fees under WesCorp’s indemnification policy set forth in its by-laws. Furthermore, the former WesCorp managers have told the court that NCUA failed in maintaining the requisite D&O coverage. CUNA Mutual Group, and its CUMIS unit, are not parties in the litigation.
The story should have correctly reported that even were those companies parties to the lawsuit, the maximum aggregate liability involved would be $10 million; however, that issue is not what is being litigated.
