Fletcher Jones Co. v. United Pacific Insurance

This is an appeal from a judgment in favor of Fletcher Jones Company, a corporation, in the sum of $4,540.

The appellant, United Pacific Insurance Company, a corporation, issued to respondent a contract entitled “Comprehensive Dishonesty, Disappearance and Destruction Policy.” That policy was in effect from June 9, 1953, to January 2, *204 1956. By the terms thereof the appellant agreed to indemnify the respondent for all loss that might be sustained by the respondent in that period of time through any fraudulent or dishonest act or acts committed by any of the employees of the respondent.

The claim of the respondent, an automobile dealer, arose out of the acts of a manager of its used-car department, one Harold M. Crecy. During the period from January 2, 1955, to October 16, 1955, he sold certain used automobiles belonging to the respondent and collected therefor the sum of $2,040 which he failed to turn over to his employer. On January 3, 1955, Crecy obtained from the respondent a check "for $2,500 in which Crecy was named as payee. The check was obtained by him for the ostensible purpose of purchasing a used car for the respondent but Crecy presented the cheek for payment and…