Law360 Canada ( January 25, 2018, 8:34 AM EST) -- Appeal by the defendant insurers from partial summary judgment granted in favour of the plaintiff, TB Bank, N.A. (Bank). The Bank sued for a declaration that it was entitled to indemnity under the professional liability section of an insurance policy for loss relating to a Ponzi scheme and damages for breach of contract. The Bank was a named insured under a Bankers’ Comprehensive Crime, Professional Indemnity and Directors’ and Officers’ Liability Programme (insurance policy) issued by the appellants, a syndicate of insurers. A Florida lawyer and customer of the Bank ran a Ponzi scheme. Substantial funds placed by investors in the scheme flowed through the law firm’s accounts at the Bank. After the scheme collapsed, about 19 investor groups sued the Bank. One investor group obtained judgment against the Bank. The Bank settled the other investor claims. The Bank then sought indemnity under both the professional liability coverage and fidelity coverage sections of the insurance policy for amounts paid to the investor groups. The appellants denied coverage under both sections. In its motion, the Bank sought a declaration concerning the interpretation of one element of the preamble to the fidelity coverage section of the insurance policy relating to the conduct of one former employee in relation to three of the investor groups. The motion judge granted partial summary judgment, declaring that the Bank sustained a direct financial loss within the meaning of the insurance policy regarding at least some of the funds deposited in the law firm’s accounts at the Bank by three of the investor groups....