A Decision Finding Theft Can Be a Taking of More than Money Costs National Union $22,114,883  Plus Interest

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Cargill, Inc.’s (Cargill) moved for judgment on the pleadings. Cargill seeks judgment in its favor as to the one disputed claim between the parties on the extent of theft coverage and as to the issue of prejudgment interest. Plaintiff National Union Fire Insurance Company of Pittsburg, Pa. (National Union) opposed the motion. In National Union Fire Insurance Company of Pittsburg, Pa., v. Cargill, Inc., No. 20-cv-0839 (WMW/JFD), United States District Court, D. Minnesota (August 24, 2021) the District Court found coverage applied.

ZALMA OPINION

Why this was a question that took a trial is difficult to understand since “theft” is something any juror could understand. Yet, National Union tried to convince the court to ignore the plea agreement Ms. Backis entered into with the government that she successfully stole more than $32,15,192, which included $3,115,611 in cash. If only the theft of cash was covered it was an amount less than the deductible. Since the theft included more than cash National Union must pay more than $22 million (application of $10,000 deductible) plus interest at the rate of 10%. If National Union appeals and loses the interest will continue to grow at $6,058 per day,