Federal Insurance Co v. HPSC, Inc.

TORRUELLA, Circuit Judge.

This case arises from a failed attempt by defendant-appellee HPSC, Inc. (“HPSC”) to recover an embezzlement loss under an executive protection insurance policy issued by plaintiff-appellant Federal Insurance Co. (“Federal”). Federal brought this declaratory judgment action against HPSC seeking rescission of the policy based on a misrepresentation made by HPSC in its 2001 insurance renewal application. HPSC counterclaimed, seeking recovery under the policy and damages for unfair and deceptive trade practices. Judgment was entered in favor of HPSC on all claims. Federal…