Gross Veneer Co. v. American Mutual Insurance
This case concerns an appeal from an order of the Supreme Court at Special Term in St. Lawrence County, which granted plaintiff, Gross Veneer Company, Inc., partial summary judgment. The dispute arose from a manufacturer’s blanket crime policy issued by defendant, American Mutual Insurance Companies, insuring against employee dishonesty. Plaintiff sought to recover funds embezzled by Chester Shockley, whom it alleged was an employee. The central issue was whether Shockley met the policy’s three-pronged definition of an 'employee,' which required compensation by the insured, the insured's right to govern and direct, and not being a broker or agent. The appellate court found that Special Term improperly relied on unsupported explanations regarding Shockley's compensation by Litchfield Park Corporation and failed to address whether this arrangement affected plaintiff's right to control Shockley or if Shockley acted as plaintiff's agent. Consequently, the order was reversed, and the motion for partial summary judgment was denied.