Senn v. Northwest Underwriters, Inc.

Mary Ann Cimoch appeals an order of summary judgment holding her personally liable for defalcation of over $12 million from an insurance company of which she was an officer and a director. We hold that she breached her statutory fiduciary duty as a director of Consumers Indemnity Company, that her ignorance of another director’s conversion of funds does not excuse her failure to act and that her inaction was a proximate cause of the company’s losses. We therefore affirm.

I

Facts

Consumers Indemnity Company (Consumers), through its exclusive agent and administrator, Northwest Underwriters, Inc.…