Bank of Mulberry v. Fireman's Fund Insurance Company v. Joe A. Arnold

HENLEY, Senior Circuit Judge.

The Bank of Mulberry was insured by Fireman’s Fund Insurance Company against losses incurred by the fraud of its employees. The Bank sued Fireman’s to recover for losses incurred by the fraud of the Bank’s former president, Joe A. Arnold. The Bank sought recovery for losses sustained by three separate events: a $100,-000.00 loan, a $42,000.00 theft, and a $142,-000. 00 loan. The district court 1 granted Fireman’s motion for a directed verdict on the $100,000.00 loan, but the Bank won an award of $181,000.00 — the amount lost less the deductible — from the jury on…