Mutual Service Casualty Insurance Company, as Subrogee of Jo Daviess Services, Inc. v. Elizabeth State Bank, an Illinois State Chartered Bank

ILANA DIAMOND ROVNER, Circuit Judge.

In the course of his employment with Jo Daviess Services, Inc. (“Jo Daviess,” or “the company”), Arlyn Hemmen managed to misappropriate more than $80,000 from the company’s bank account at the Elizabeth State Bank (“ESB” or “the bank”). Mutual Service Casualty Company (“Mutual”), which insured Jo Daviess, compensated the company for its loss. Mutual then filed suit against ESB, contending that the bank had breached its contractual obligations to Jo Daviess by allowing Hem-men to abscond with its funds. The case proceeded to trial, and after both parties had…