Appeal, No. 123, Oct. T., 1956, from judgment of Municipal Court of Philadelphia County, Jan. T., 1954, No. 124, in case of Northeast Lincoln-Mercury, Inc. v. The Century Indemnity Company of Hartford, Connecticut. Judgment affirmed.
Bayard M. Graf, with him Thomas F. Mount, Joseph W. Henderson and Rawle & Henderson, for appellant.
Burton Caine, with him Wolf, Block, Schorr & Solis-Cohen, for appellee.
Before Rhodes, P.j., Hirt, Gunther, Wright, Woodside, Ervin, and Carr, JJ.
[ 181 Pa. Super. Page 596]
On May 4, 1950, the Century Indemnity Company of Hartford, appellant, insured the Northeast Lincoln-Mercury, Inc., appellee, for a period of three years against loss from employe dishonesty. Two and one half years later an employe and principal in this case was engaged by the appellee company and worked until April 24, 1953 when he was dismissed for stealing property belonging to the appellee.
Proof of claim was filed but appellant refused to pay on the ground that the policy was cancelled by reason of the appellee's knowledge that the principal committed dishonest acts while engaged in prior employment. It is asserted that the knowledge imparted to appellee consisted of the fact that its service manager was informed by an official of a competing company that the principal was discharged by his company on November 19, 1952 for stealing tools and an engine and that the principal also stole tires, a cooling fan and other equipment from Kenneth Duncan Motors, prior employers.
Appellant relies on the following provisions for cancellation of the policy:
"Section 11. Insuring agreement I of this policy shall be deemed cancelled as to any employee: (a) Immediately upon discovery by the assured ... of any fraudulent or dishonest act on the part of such employee."
"Prior Fraud, Dishonesty or Cancellation. Section 5. No employee, to the best of the knowledge of the assured or of any partner ...