Corwin Chrysler-Plymouth, Inc. v. Westchester Fire Insurance Co.

VANDE WALLE, Justice.

Westchester Fire Insurance Company (“Westchester”) issued an insurance policy to Corwin Chrysler-Plymouth, Inc. (“Cor-win”), insuring against employee defalcations. After one of Corwin’s employees embezzled cash funds from it, Corwin sought reimbursement for the embezzlement from Westchester by filing a claim in accordance with the terms of the insurance policy. Westchester paid part of the claim to Cor-win, but denied that the insurance policy covered the remaining loss. Corwin then sued Westchester in the district court to recover its full loss. The district court…