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Bird v. Penn Central Co.
United States District Court for the Eastern District of Pennsylvania
341 F. Supp. 291 (1972)
Facts
John Bird and other Lloyds of London insurance underwriters (insurers) (plaintiffs) sued to rescind insurance policies covering Penn Central Company, David Bevan, and Bevan’s fellow Penn Central directors and officers (defendants). As chair of Penn Central’s finance committee, Bevan submitted the application for all these policies. The insurers accused Bevan of having fraudulently included material misrepresentations in that application. Some of the directors moved for summary judgment. The federal district court denied that motion but agreed to rehear the motion to consider whether Bevan’s alleged fraud could be imputed to Bevan’s colleagues.
Rule of Law
Issue
Holding and Reasoning (Lord, C.J.)
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