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LUMBERMENS v. STATE, DEPT. OF REVENUE

No. 96-163.

564 N.W.2d 431 (1997)

LUMBERMENS MUTUAL CASUALTY COMPANY, Appellant, v. STATE of Iowa, DEPARTMENT OF REVENUE AND FINANCE, Appellee.

Supreme Court of Iowa.

June 18, 1997.

Attorney(s) appearing for the Case

Fred L. Morris and Joseph M. Barron of Peddicord, Wharton, Thune & Spencer, P.C., Des Moines, for appellant.

Thomas J. Miller, Attorney General, Harry M. Griger, Special Assistant Attorney General, and Lucille M. Hardy, Assistant Attorney General, for appellee.

Considered by HARRIS, P.J., and LAVORATO, NEUMAN, SNELL, and ANDREASEN, JJ.

NEUMAN, Justice.

Plaintiff Lumbermens Mutual Casualty Company appeals summary judgment for the Iowa Department of Revenue and Finance, claiming insurance proceeds paid out on an embezzlement claim should be reimbursed from taxes collected on the stolen funds. The district court reasoned the insurer's subrogation rights under the parties' contract extended only to insured risks, not tax assessments. Finding no error in the court's analysis, we affirm.

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