Galloway v. Marathon Insurance

This is an action by the appellants, a partnership engaged in selling cars, to recover the value of a car sold by them to W. E. White. The appellee had issued to the firm a policy insuring against the loss of cars by theft or larceny, with an exception to be mentioned. It was stipulated below that in purchasing the car in question White gave the dealers a check which he knew to be worthless. The trial court, sitting without a jury, found for the defendant.

The policy excludes from its coverage any theft, larceny, robbery, or pilferage that is caused by any person to whom the partnership…