Performance Autoplex II Ltd. v. Mid-Continent Casualty Co.

Plaintiffs-Appellants Performance Auto-plex II Ltd. and Performance Ford, L.P. filed suit against Defendant-Appellee Mid-Continent Casualty Company, alleging that Mid-Continent improperly refused to pay for employee dishonesty losses covered by one of its insurance policies. The district court granted summary judgment in favor of Mid-Continent on all claims and Performance Autoplex and Performance Ford appeal. We affirm in part, reverse in part, and remand.

I. FACTUAL AND PROCEDURAL HISTORY

A. Facts

Performance Automotive Group, Inc. (“Performance Group”) operates new car dealerships in Texas…