Lumbermens Mutual Casualty Company v. Jamieson

The plaintiff insured Boise Cascade Corporation (Boise) under a fidelity bond. Boise has a subsidiary, Ames Harris Neville Company (AHN), which employed the defendant Jamieson. Jamieson sold burlap, the property of AHN, to the defendant Messal. Jamie-son converted the payments received from Messal for this burlap to his personal use and plaintiff alleges such defalcations were with the knowledge and participation of Messal. Plaintiff alleges Boise suffered a $16,000 loss from these transactions and plaintiff paid Boise such amount pursuant to the fidelity bond and was subrogated to Boise’s…