Cavalier-Jefferson Corp. v. Connecticut Mut. Life Ins. Co

DOBIE, Circuit Judge.

Cavalier-Jefferson Corporation filed a civil action in the United States District Court for the Eastern District of Virginia against The Connecticut Mutual Life Insurance Company. This case arose out of a mortgage loan transaction in which the plaintiff was mortgagor and defendant was mortgagee. The attorney, Gerould Rumble, in charge of closing the loan, embezzled part of the loan proceeds placed in his hands and thereafter died insolvent. It is the amount thus lost which the plaintiff brought this action to recover from the defendant.

Trial was had in the District Court…