Property Co. Can't Force Lloyd's Insurers To Cover Theft
By Jeff Sistrunk (April 13, 2020, 4:27 PM EDT) -- A North Dakota federal judge ruled Friday that underwriters at Lloyd's of London are not obligated to cover a property management company's loss of about $270,000 of client funds to an ex-employee's embezzlement, finding the worker's transmission of the funds to her own account triggered a policy exclusion.
U.S. District Judge Peter D. Welte granted the Lloyd's underwriters' motion to dismiss the breach of contract suit brought by Fargo-based Campbell Property Management LLC, which claimed the underwriters wrongfully denied coverage for a portion of the funds its clients lost to a years-long scheme perpetrated by former CPM financial controller Mickey Haarstad....
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