Was the partnership bound by Shelley’s decision during the winding-up process to cancel the policy, even though he had not told Curle?

Michael Curle and Steven Shelley were partners doing business under the name C & S Roofing. When the partnership dissolved, Curle agreed to complete one unfinished project (the Bishop house) and left Shelley to wind up the other partnership business. Shelley canceled the partnership’s general liability insurance policy without telling Curle. While painting the Bishop house, Dennis Whitsett fell through a hole in the roof that the partnership had left covered only with tar paper. When Whitsett sought to recover from the partnership for his serious injuries, Curle and Shelley asked the insurance company to pay the claim.

The trial court found the policy canceled as to Steven Shelley, individually, but in full force and effect as to the partnership and Michael Curle, individually. The insurance company appealed.