Kozak v. United States Fidelity & Guaranty Co.

Charlotte and Edward L. Kozak appeal from a judgment dismissing their claim against the United States Fidelity and Guaranty Company (USF&G) on the merits. The issue is whether an exclusionary clause excepting “wrongful conversion and embezzlement” from an insurance policy covering loss by theft is ambiguous as applied to a farm tenant who made an unauthorized sale of cattle and appropriated the proceeds for his own use. Because we find that the exclusionary clause is ambiguous, we conclude that it does not defeat the Kozaks’ claim under the policy. Accordingly, we reverse.

Charlotte and Edward…