FIRST DEFIANCE FINANCIAL v. PROGRESSIVE CAS. INS.

Nos. 10-3943, 10-3944.

688 F.3d 265 (2012)

FIRST DEFIANCE FINANCIAL CORPORATION, First Federal Bank of the Midwest, and First Insurance and Investments, Inc., Plaintiffs-Appellees/Cross-Appellants, v. PROGRESSIVE CASUALTY INSURANCE COMPANY, Defendant-Appellant/Cross-Appellee.

United States Court of Appeals, Sixth Circuit.

Decided and Filed: August 1, 2012.


Attorney(s) appearing for the Case

ARGUED: Scott Schmookler , Clausen Miller, PC, Chicago, Illinois, for Appellant/Cross-Appellee. William James Pohlman , Vorys, Sater, Seymour & Pease LLP, Columbus, Ohio, for Appellees/Cross-Appellants. ON BRIEF: Scott Schmookler , Clausen Miller, PC, Chicago, Illinois, for Appellant/Cross-Appellee. William James Pohlman , Vorys, Sater, Seymour & Pease LLP, Columbus, Ohio, Phillip J. Smith , Vorys, Sater, Seymour, and Pease LLP, Cincinnati, Ohio, for Appellees/Cross-Appellants. Michael J. Hendershot , Vorys, Sater, Seymour and Pease LLP, Columbus, Ohio, for Amicus Curiae.

SUTTON, J., delivered the opinion of the court, in which SUHRHEINRICH, J., joined. COOK, J. (pp. 274-79), delivered a separate opinion.


OPINION

SUTTON, Circuit Judge.

This insurance-coverage dispute arises from a policy designed to protect financial institutions from losses caused by dishonest employees. Trying to recover nearly one million dollars stolen by an employee from client brokerage accounts, three financial institutions sued the insurance company that issued the policy. The district court held that the policy covered the losses and granted summary judgment to the financial institutions...

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