Opinion ID: 6982224
Heading Depth: 2
Heading Rank: 1

Heading: Hamilton-Tañ as an Authorized Representative

Text: In its March 8, 1995 order, the district court found that Hamilton-Taft operated as the “authorized representative” for Verbatim and Glendale. The district court based this finding on the fact that both Verbatim and Glendale granted Hamilton-Taft authority to represent and submit records on their behalf before Federal, State, or local jurisdictions’ tax offices with respect to payroll taxes. As noted previously, both also filed IRS Form 2848-D, entitled “Tax Information Authorization and Declaration of Representative,” appointing Hamilton-Taft as their representative. In addition, Glendale also filed an IRS Form 2848, entitled “Power of Attorney and Declaration of Representative,” in which Glendale granted Hamilton-Taft the right to act as its attorney-in-fact before the IRS. However, the district court found that “Stanford did not appoint Hamilton Taft as its representative.” The district court did not provide a reason for this conclusion. Contrary to the district court’s conclusion, this court finds that Stanford did authorize Hamilton-Taft to act as its representative before the appropriate tax authorities for the purposes of payroll taxes. Just like Glendale’s TSA, the provisions of Stanford’s TSA required that Hamilton-Taft deposit necessary taxes and prepare all required tax forms and reports on Stanford’s behalf. Furthermore, Stanford filed IRS Form 2848-D which authorized Hamilton-Taft to act as its representative before the IRS for payroll tax purposes. Based on a plain interpretation of the term and on the criteria used by the district court to determine that Hamilton-Taft was an authorized representative for Verbatim and Glendale, we hold that Hamilton-Taft was also an authorized representative for Stanford. Inherent in Hamilton-Taft’s status as an authorized representative for tax purposes is its authority to possess and disburse the funds of Stanford, Glendale and Verbatim in carrying out that duty. Its authorized access to these funds, on the premises of the insured or in transit, thus rendered it an “authorized representative” within the meaning of the theft policy’s exclusionary clause.