CashZone Check Cashing Corp. v. Vigilant Insurance

OPINION OF THE COURT

Saxe, J.

Plaintiffs seek coverage under the “In Transit” clause of an insurance bond they purchased from defendant Vigilant Insurance Company, for losses they sustained due to an embezzlement scheme perpetrated by the principals of nonparty Mount Vernon Money Center (MVMC), an armored car company. The larcenies were perpetrated while plaintiffs’ cash was being processed at MVMC’s vault, en route between the Federal Reserve Bank and plaintiffs’ check-cashing businesses and ATMs. The insurer disclaimed coverage, and in this declaratory judgment action, both sides moved for…