Fidelity & Deposit Co. of Maryland v. Dally

Penoyar, A.C.J.

fl Fidelity & Deposit Company of Maryland seeks reimbursement for its insurance payment to the city of Poulsbo (City) for a city employee’s theft of AllianceOne Receivables Management, Inc., checks paid to the City. The City contracted with AllianceOne to collect outstanding traffic fines, penalties, and costs. Fidelity claims that the indemnification agreement makes Alliance-One liable as AllianceOne used improper payee designations and failed to check the endorsements after the checks were cashed. The trial court found no theory of liability applied under the agreement and…