Bankmanagers Corp. v. Federal Ins. Co.

Federal 7th Circuit Court
Civil Court
Case Number: 
Nos. 12-3202 & 13-1506 Cons.
Decision Date: 
April 5, 2013
Federal District: 
E.D. Wisc.
Dist. Ct. did not err in entering judgment in favor of defendant-insurance company in action seeking declaration that defendant’s financial-institution bond required defendant to defend and indemnify plaintiff in underlying action seeking recovery for plaintiff's role in drafting 570 cashier’s checks improperly used by corporate officer to pay personal debts of officer from corporation’s bank account. Specific clause in bond provided coverage only for fraud occurring on plaintiff’s premises, and record showed that corporate officer never entered plaintiff’s premises, but rather sent third-party to obtain said checks. Ct. rejected plaintiff’s argument that clause did not apply since corporate officer committed larceny, rather than fraud.