Hotel Atlantis, Inc., Plaintiff-Appellee-Appellant v. Peerless Casualty Company, Defendant-Appellant-Appellee

LUMBARD, Chief Judge.

These appeals test whether the plaintiff in this action, insured by the defend ant against loss from fraud or dishonesty of an employee, complied with the terms of the contract of insurance, and whether, upon the trial of the action, the alleged loss was proved. If recovery on the contract of insurance is denied, we are then to decide whether the insurer is obligated to pay $5,000 in settlement of the claim pursuant to an agreement alleged to have been made on the insurer’s behalf by an adjuster who was retained to investigate the claim.

The district court found for the…