United States Seventh Circuit

In a suit by an insurer to recover insurance payouts it made under a policy for employee embezzlement, dismissal of the complaint is affirmed where: 1) plaintiff's claim for a constructive trust in the life insurance policy that one defendant issued to the embezzler fails because the insurer had no insurable interest in the embezzler and the embezzler did not consent to having his life insured for the plaintiff's benefit; 2) the constructive trust claim would also give plaintiff a benefit greater than defendant's wrongful gain; and 3) plaintiff's claim against the other defendant was barred by the statute of limitations.

Appellate Information

• Argued 10/16/2006
• Decided 03/13/2007
• Published 03/14/2007

Judges

• POSNER, Circuit Judge., Before POSNER, RIPPLE, and WOOD, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellant:
  
• James A. Knox, Jr. (argued), Tressler, Soderstrom, Maloney & Priess, Chicago, IL, for Plaintiff-Appellant.


• For Appellees:
  
• Michael D. Richman, James A. Rolfes (argued), Sachnoff & Weaver, Chicago, IL, for Defendant-Appellee, Northwestern Mutual Life Ins. Co., John S. Monical (argued), Lawrence, Kamin, Saunders & Uhlenhop, Chicago, IL, for Defendant-Appellee, Merrill Lynch, Pierce, Fenner & Smith, Inc.