9th Circuit Reverses Ruling For Insurer In Coverage Dispute Over Embezzled Funds

Mealey's (April 26, 2016, 9:52 AM EDT) -- SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on April 22 found that a lower court erred in holding that recovery for embezzled client funds under a fidelity bond policy would violate California Insurance Code Section 533, concluding that policy endorsements created a surety relationship that is exempt from Section 533 (Thomas A. Dillon, as court appointed receiver for Vesta Strategies LLC and Excalibur 1031 Group v. Continental Casualty Co., No. 14-15802, 9th Cir.; 2016 U.S. App. LEXIS 7350).

(Memorandum available. Document #13-160505-007Z.)...
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