Transamerica Insurance Co. v. Standard Oil Co.

VANDE WALLE, Justice.

Robert Smith, former office manager of Minot Builders Supply Association (hereinafter “MBS”), fraudulently used a credit card issued to MBS by Standard Oil Company of Indiana, doing business as Amoc.o Oil Company (hereinafter “Amoco”), for his personal gain. Because Transamerica Insurance Company (hereinafter “Transamer-ica”) insured MBS for wrongful acts by MBS employees, Transamerica paid MBS for the loss caused by Smith’s fraud. As a result Transamerica became subrogated to MBS’s claims. Transamerica brought an action against Amoco alleging that it was not liable for…