After a seven-year legal battle, the $570 million Michigan FirstCredit Union said it is pleased with a court’s decision to uphold a2009 verdict in a fidelity bond denial case.

“We are pleased with the court’s decision to side with MichiganFirst, and with the latest victory we consider this legal battleover,” said Michael Poulos, president/CEO of Michigan First inLathrup Village, Mich.

Although CUNA Mutual may legally ask the United States SupremeCourt to review the case, Michigan First’s law firms, Holzman Corkery PLLC in Southfield, Mich. andMcAlpine and Associates of Auburn Hills, Mich., believe a review bythe Supreme Court is highly unlikely, the credit union said.

In 2004, Michigan First filed a claim with CUNA Mutual InsuranceSociety seeking to recover losses sustained when its vice presidentof lending consciously disregarded the credit union’s lendingpolicy in implementing an indirect lending program and approvingloans under that program.

After an investigation of nearly one and a half years, CUNAMutual denied the credit union’s claim. In 2005, Michigan Firstfiled suit against CUNA Mutual, claiming breach of the bond intheir refusal to pay the credit union’s claim and also seekingdamages under Michigan’s Unfair Trade Practices Act.

After a trial that lasted nearly one month, a jury in January2009 returned a verdict in favor of Michigan First for the policylimits of $5.05 million. Michigan First also prevailed on itsclaims under the Unfair Trade Practices Act and received additionalpenalty interest of nearly $2.7 million. At the conclusion ofthe trial, CUNA Mutual vowed to appeal.

On May 24, 2011, the United States Court of Appeals for theSixth Circuit affirmed a jury’s 2009 verdict and rejected all of CUNA Mutual’s claims for a newtrial.

“Every court that has reviewed this case has concluded that thecredit union suffered a loss that was covered under the bond andthat CUNA Mutual wrongfully denied Michigan First’s claim,” Poulossaid.

CUNA Mutual has not yet responded to a request for comment.