United States Fidelity & Guaranty Co. v. Bass

VANCE, Circuit Judge:

Two state executive officials appeal adverse money judgments for tortious conversion through erroneous disbursement of state funds by other state employees without defendants’ participation or knowledge. We hold that under Alabama law an action for conversion does not lie and public officials may not be held individually liable for their subordinates’ unauthorized actions. We therefore reverse the district court.

I

Cherokee Construction Co. (Cherokee) entered a contract with the state of Alabama to construct and to improve a public road. It furnished a performance bond and…