Haskel Engineering & Supply Co. v. Hartford Accident & Indemnity Co.

Opinion

THOMPSON, J.

This appeal from a summary judgment in declaratory relief raises an issue apparently not previously considered in California, We are required to determine whether, where the obligor on a fidelity bond has fully reimbursed its obligee for loss caused by the embezzlement of an employee, the obligor or the obligee is entitled to increases in value of property acquired by the employee with the embezzled funds. Recognizing that the equitable principles of constructive trust and subrogation collide when applied to the issue, we conclude that the obligor is entitled to the benefit…