Pennsylvania Fire Insurance Co. v. Flaming

This is an action to recover upon an insurance policy which insured against losses caused by employee dishonesty to the extent of $2,500.00 per employee.

Kenneth Flaming (plaintiff below) operated a supermarket in Stillwater, Oklahoma. On October 26, 1962, one of his employees, A, was arrested outside the store with about $68.00 worth of cigarettes from the store in his possession. A had been in plaintiff’s employ since May, 1962. Pleading guilty to grand larceny, A was sentenced to eighteen months in the state penitentiary.

Meanwhile, plaintiff reported his loss to the Pennsylvania Fire…