Wolverine Brass Works v. Pac. Coast Cas. Co. of S.F.

This is an appeal from a judgment in favor of plaintiff and from an order denying defendant’s motion for a new trial in an action upon a policy of insurance, issued by defendant, insuring the plaintiff against loss through the dishonesty of one Edwin J. Pope, its employee.

Some time prior to the fifteenth day of July, 1910, Edwin J. Pope, who at that time was employed by plaintiff as cashier, applied to the defendant for an indemnity bond in a certain sum. Thereupon defendant addressed a letter to plaintiff containing certain questions to be answered by it. Among these were: “Has he (referring to Pope) ever been in arrears with you, or do you know of any reason why this bond should not be issued?” and “Is he now in debt to you?” To both questions the plaintiff, through one of its officers, answered “No.” The document containing the questions with their answers was returned to the defendant about the eighteenth day of July, and about a month later the indemnity bond upon which the present suit is brought was issued, relating back to June 15, 1910, as the date on which the risk was to take effect. Within the life of the bond Pope embezzled $1255.79 from the plaintiff. At the trial…