Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

London & Lancashire Indemnity Co. v. Peoples Nat. Bank & Trust Co.

May 26, 1932

LONDON & LANCASHIRE INDEMNITY CO. OF AMERICA
v.
PEOPLES NAT. BANK & TRUST CO.



Appeal from the District Court of the United States for the Indianapolis Division of the Southern District of Indiana.

Author: Alschuler

Before ALSCHULER, EVANS, and SPARKS, Circuit Judges.

ALSCHULER, Circuit Judge.

Appellee was for years a national bank at Sullivan, Ind., under the name of National Bank of Sullivan. November 19, 1928, it acquired the assets and business of another bank there and continued its banking business there under the name of Peoples National Bank & Trust Company. One Maple had long been its trust officer and cashier, and after November 19, 1928, was trust officer and vice president.

Under date of December 13, 1928, appellant, an indemnity company, issued to appellee its blanket indemnity bond wherein, in consideration of an annual premium, appellant agreed to indemnify appellee against loss, to an amount not exceeding $50,000, through any dishonest act of any of appellee's employees, as well as through robbery, burglary, theft, and the like.

Alleging loss sustained through dishonest acts of Maple, appellee brought suit against appellant upon the bond and recovered judgment, from which this appeal is prosecuted. The judgment was for $15,750, which, under the court's charge and as stated in the verdict itself, is composed of:

First, $5,000 for loss incurred through the dishonest acts of said Maple prior to date of appellant's bond;

Second, $5,000 for loss occurring after date of the bond through Maple's dishonest act in respect to certain Baird drafts;

Third, $4,000 for loss occasioned by the disappearance of that amount on the morning of January 16, 1929;

Fourth, $1,750 of interest upon these amounts.

As bearing on the first item, it appears that under date of March 12, 1927, the Metropolitan Casualty Insurance Company of New York, an indemnity company, in consideration of an annual premium, agreed to indemnify the National Bank of Sullivan against loss through dishonesty on the part of any employee to the amount of $5,000 for each of such employees of the bank. In this contract it is provided:

"(4) That loss is covered hereunder only if the acts causing such loss occur while this insurance is in force and are discovered and reported to the Underwriter within two (2) years after the termination of this insurance."

"(7) That this insurance shall become effective as of the date of this instrument, and shall remain in force until cancelled; and this insurance shall be deemed cancelled upon the date that may be specified in a written notice of cancellation served by the Underwriter upon the Insured or by the Insured upon the Underwriter. * * *"

Upon appellant's indemnity bond becoming effective, the Metropolitan bond was duly canceled according to its terms; and to appellant's bond there was then attached a rider, under same date as the bond itself, wherein it was recited that theretofore the beneficiaries of the new bond had carried indemnity fidelity insurance in the Metropolitan Casualty Company of New York, and that such fidelity suretyship had been allowed to ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.