Lumbermens Mutual Casualty Co. v. Thornton

RONALD R. HOLLIGER, Judge.

Western Container Corporation retained respondents (hereinafter “Grant Thornton” or “Thornton”) to perform financial audits of its books for fiscal years ending September 30 for 1992, 1993, 1994, 1995, and 1996. Sometime later it was discovered that Western Container’s controller had stolen over $334,000 from Western Container during those years. Appellants Lumbermens Mutual Casualty Co. (hereinafter “Lumbermens”) and Reliance Insurance Company (hereinafter “Reliance”) issued policies of fidelity insurance to Western Container for the years identified. After payment…