Federal Judge: Law Firm Is Owed ‘Employee Dishonesty’ Coverage For Embezzled Funds

Mealey's (September 8, 2015, 9:45 AM EDT) -- BALTIMORE — A Maryland federal judge on Sept. 3 held that an insurer has a duty to provide employee dishonesty coverage for a law firm insured’s loss arising from $157,268.75 that a paralegal allegedly embezzled from a trust account (Cumberland & Erly, LLC v. Nationwide Mutual Insurance Co., No. 14-2399, D. Md.; 2015 U.S. Dist. LEXIS 117881).

(Memorandum opinion available. Document #13-150924-009Z.)

Employee Dishonesty

The law firm Cumberland & Erly LLC (C&E) sued its insurer Nationwide Mutual Insurance Co. in the U.S. District Court for the...
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