Chicago Insurance Company v. James Capwill

ROGERS, Circuit Judge.

This appeal began as a declaratory judgment action filed by Chicago Insurance Company against its former insured, James Capwill, and his companies. Cap-will is currently in jail for wire fraud. Chicago Insurance originally sought a declaratory judgment stating that Capwill’s fraudulent conduct did not fall under his accounting malpractice policy. After learning that Capwill lied on his policy application, Chicago Insurance amended its complaint to seek rescission of the policy. The district court found that Capwill lied in applying for malpractice insurance, that he lied…