Stanford University Hospital v. Federal Insurance

KEEP, District Judge:

This case stems from a dispute over coverage under crime insurance policies issued by defendant Federal Insurance Company (“Federal”) to Stanford University Hospital (“Stanford”), Verbatim Corporation (“Verbatim”), and Glendale Adventist Medical Center (“Glendale”) (hereinafter collectively referred to as “plaintiffs”). Plaintiffs entered into payroll tax service agreements with Hamilton-Taft & Co. (“Hamilton-JTaft”) requiring that Hamilton-Taft make timely tax payments on their behalf. Plaintiffs seek indemnification for losses resulting from the misappropriation of…