Cincinnati Ins. Co. v. Tuscaloosa County Parking & Transit Auth
Cincinnati Ins. Co. v. Tuscaloosa County Parking & Transit Auth., 827 So. 2d 765 (Ala. 2002), was a case involving employee embezzlement.
When the dishonesty was discovered, the insured made a claim under a fidelity bond containing the standard exclusion, as in the instant case. After determining that the language of the exclusion was not ambiguous, the Supreme Court of Alabama resorted to standard dictionary definitions of "salary" and "earned," and held that because the embezzled funds were not earned, the loss was covered. Id. at 768.
The Alabama court opted for what is clearly the minority view of the exclusion and stated:
"The parties cite cases that are not binding on this Court. Some are consistent with our holding; some are not relevant.... " Id.