UNPUBLISHED

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

JAMES M. POYNER; RALPH C. MOORE;
KARL G. HUDSON, JR.; TEXANA J.
MONTAGUE; JAMES D. RAY, JR.;
FRANK R. GAILOR,
Plaintiffs-Appellants,
                                                               No. 96-2079
v.

AMERICAN CASUALTY COMPANY OF
READING, PENNSYLVANIA, c/o CNA
Insurance Companies,
Defendant-Appellee.

Appeal from the United States District Court
for the Eastern District of North Carolina, at Raleigh.
Malcolm J. Howard, District Judge.
(CA-95-1067-5-H)

Argued: July 9, 1997

Decided: August 15, 1997

Before NIEMEYER, MICHAEL, and MOTZ, Circuit Judges.

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Affirmed by unpublished per curiam opinion.

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COUNSEL

ARGUED: William Joseph H. Smith, STOHLMAN, BEUCHERT,
EGAN & SMITH, CHARTERED, Washington, D.C., for Appellants.
William Eric O'Brian, Jr., ROSS, DIXON & MASBACK, L.L.P.,
Washington, D.C., for Appellee. ON BRIEF: David M. Gische, R.
Darryl Cooper, ROSS, DIXON & MASBACK, L.L.P., Washington,
D.C., for Appellee.

_________________________________________________________________

Unpublished opinions are not binding precedent in this circuit. See
Local Rule 36(c).

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OPINION

PER CURIAM:

The directors of a failed savings and loan, First Federal Savings &
Loan Association of Raleigh, appeal the decision of the district court
dismissing their action against American Casualty Company, the
issuer of their directors and officers liability policy, as barred by the
applicable statutes of limitations. We affirm.

The Resolution Trust Corporation placed First Federal in receiver-
ship in December 1990. Shortly thereafter, the RTC filed claims
against First Federal's directors for "wrongful acts" associated with
the origination and servicing of certain construction loans. The direc-
tors requested American Casualty, their insurer, to accept defense of
the claims under the provisions of First Federal's directors and offi-
cers liability insurance policy. On January 25, 1991, American Casu-
alty informed the directors, in writing, that it was denying coverage
for the claims and refusing to pay attorneys' fees for the defense.

On December 28, 1994, the directors settled their claims with RTC
for $1,130,000. American Casualty, consistent with its position,
declined to participate in negotiations and refused to pay for the set-
tlement or attorneys' fees. On December 27, 1995, the directors initi-
ated the present diversity action against American Casualty alleging
fraudulent misrepresentation, unlawful use of endorsements, and
unfair and deceptive practices arising out of American Casualty's fail-
ure to cover the loss. The directors sought, inter alia, reformation of
the insurance contract, payment of the settlement amount and attor-
neys' fees, and treble or punitive damages.

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The district court found that the statute of limitations had run on
all of the directors' claims and dismissed the complaint on that basis.
In doing so, the court rejected the directors' contention that a "no
action" clause in the insurance agreement had tolled the running of
limitations because that clause governed only suits brought under the
insurance contract and the directors alleged no"dispute as to the
meaning of the insurance policy." Poyner v. American Cas. Co., No.
5:95-CV-l067-H-1, slip op. at 5 (E.D.N.C. July 5, 1996). After care-
fully considering the parties' briefs and the applicable law, and hav-
ing had the benefit of oral argument, we affirm for the reasons ably
stated by the district court.

AFFIRMED

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