Federal Insurance Company I.C. And Aetna Insurance Company v. Banco De Ponce

BREYER, Circuit Judge.

This diversity case from Puerto Rico arises out of losses caused when a corporation’s employee embezzled money by writing unauthorized corporate checks payable to various banks and then sending those checks to the banks to pay the employee’s personal credit card bills. Eventually, the employee was found out. This case is one of several in which the corporation’s insurers (as its assignees) seek to recover money from a bank to which the employee sent some of the checks. The insurers here argue theories of “conversion” and “unjust enrichment.” We agree with the district…