Lumbermens Mutual Casualty Co. v. State, Department of Revenue & Finance

NEUMAN, Justice.

Plaintiff Lumbermens Mutual Casualty Company appeals summary judgment for the Iowa Department of Revenue and Finance, claiming insurance proceeds paid out on an embezzlement claim should be reimbursed from taxes collected on the stolen funds. The district court reasoned the insurer’s sub-rogation rights under the parties’ contract extended only to insured risks, not tax assessments. Finding no error in the court’s analysis, we affirm.

The facts are undisputed. From 1989 to 1992, revenue department employee Lisa Leslie embezzled $692,468. She was aided in the scheme by her…