R. I. Recreation Center, Inc. v. Ætna Casualty & Surety Co.
Court of Appeals for the First Circuit · 1949-11-03 · cited 50×
This case involved a company's claim under a Comprehensive Dishonesty, Disappearance and Destruction insurance policy for recovery of $3,800 in cash taken from its safe by its manager. The policy covered losses from wrongful abstraction of money on the premises but excluded those caused or contributed to by dishonest, fraudulent, or criminal acts of employees. After removal to federal court on diversity grounds, the district court granted summary judgment for the insurer based on depositions describing the manager taking the funds after armed robbers abducted his brother and threatened harm to family members unless he complied. The appeals court affirmed, reasoning that the manager's actions amounted to a criminal act under settled legal principles and thus triggered the policy exclusion, without sufficient basis to find coercion excusing the conduct as a matter of law.