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

G.M. McKelvey Co. (P) had an insurance policy with General Casualty Co. (D) which insured against losses to employers on account of defalcations of their employees. The evidence at issue was several written confessions signed by P's employees. The confessions admitted misappropriations of P's funds and were introduced to prove the fact and amount of P's loss. D objected to the evidence as hearsay.

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