Auto-Owners Ins. Co. v. Bank One

879 N.E.2d 1086 (2008)

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Nature Of The Case

This section contains the nature of the case and procedural background.

Facts

Wulf stole more than $500,000 from his employer, P, by depositing checks payable to P into a personal account he opened at D in the name of 'Auto-Owners, Kenneth B. Wulf.' Wulf worked in the Claims Division of P from May 1988 until he was terminated in July 1998. One of Wulf's responsibilities was to pursue subrogation and salvage claims on behalf of P. Wulf handled the files and the checks that P received for subrogation and salvage. When a check arrived, staff would open it and attach it to the relevant file before passing the check and file on to the adjuster. No other record was kept of such checks. It was the adjuster's responsibility to forward the checks back to clerical staff, who would then send the checks to P's main office in Michigan. It was P's policy for all files to be reviewed by a manager every six months. In 1991, Wulf opened an account at D and used a post office box as the address for the account. D did not request, nor did Wulf provide, any documents to confirm his authorization to open and use the account on behalf of P. Wulf used a stamp that said 'Auto Owners Insurance Deposit Only' to endorse checks and he deposited a total of $546,000 over the course of almost eight years. Another P employee discovered Wulf's conduct in 1998, while Wulf was on vacation. P sued D alleging the failure to exercise ordinary care. The trial court granted D's motion for summary judgment and the Court of Appeals affirmed. P appealed.

Issues

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Holding & Decision

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Legal Analysis

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