Universal Credit Co. v. United States Guarantee Co.

Opinion by

Mr. Chief Justice Kephart,

Appellee contracted to pay appellant all direct pecuniary losses sustained by the latter through “any act or acts of fraud, dishonesty, larceny, embezzlement, forgery or wrongful extraction” committed by any of appellant’s employees. It was in the business of financing the purchase of automobiles by dealers who were to repay the amounts loaned to them promptly when sales were made. In order to ascertain whether any cars had been sold without repayment of the amount loaned, an employee, Gregory, was charged with the duty of checking the cars at the dealer’s…