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FIDELITY AND DEPOSIT CO. OF MARYLAND v. DALLY

No. 36764-5-II.

201 P.3d 1040 (2009)

FIDELITY AND DEPOSIT COMPANY OF MARYLAND, an assignee of the City of Poulsbo, Appellant, v. Deborah Jo DALLY, a single woman; Navy Federal Credit Union, a Virginia corporation; and AllianceOne Receivables Management, Inc., a Delaware Corporation, d/b/a Allied Credit, and/or AllianceOne, Inc., Respondents.

Court of Appeals of Washington, Division 2.

February 10, 2009.

Attorney(s) appearing for the Case

Alexander A. Friedrich, Yusen & Friedrich, Seattle, WA, for Appellant.

Alan Bradford Hughes, Alan B. Hughes PS, Seattle, WA, for Respondents.

David J. Elkanich, Hinshaw & Culbertson LLP, Portland, OR, for Other Parties.

PENOYAR, J.

¶ 1 Fidelity & Deposit Company of Maryland (Fidelity) seeks reimbursement for its insurance payment to the City of Poulsbo (City) for a City employee's theft of AllianceOne Receivables Management Inc. (AllianceOne) checks paid to the City. The City contracted with AllianceOne to collect outstanding traffic fines, penalties, and costs. Fidelity claims that the indemnification agreement makes AllianceOne liable as AllianceOne used improper payee...

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