Purdy Co. v. Transportation Insurance

Plaintiffs, The Purdy Company of Illinois (Purdy), and its wholly owned subsidiary, A.D. Schader Co. (Schader), filed a complaint for declaratory judgment in two counts against the defendant, Transportation Insurance Company, seeking a determination of their rights under the terms of an insurance policy issued by the defendant that insured against losses caused by employee dishonesty. Count I alleged that the defendant had breached the terms of the policy when it refused to indemnify the plaintiffs for the full amount of the losses caused by the defalcations of two of its former employees.…