Leo McCullough Doing Business as Video Unlimited v. State Farm Fire & Casualty Company

MAGILL, Circuit Judge.

Appellee Leo McCullough insured his videotape rental business, Video Unlimited, against fire and theft under a policy issued by appellant State Farm Fire and Casualty Company (State Farm). McCullough submitted claims under the policy for a fire and for a subsequent burglary. State Farm denied coverage, alleging that McCullough had committed arson and fraud, thereby voiding the policy. After a bench trial, the district court 1 found that McCullough’s son, who was McCullough’s de facto business partner, had committed arson, and ruled that McCullough was barred from…