Bank of Dade v. Fidelity and Deposit Company of Maryland

AINSWORTH, Circuit Judge:

The question for decision in this unusual Georgia diversity case is whether a robbery by extortion of plaintiff bank’s funds constitutes a loss covered by the standard form Banker’s Blanket Bond insurance policy issued to the bank by the defendant insurer.

The facts are undisputed, having been stipulated by the parties. During banking hours, an intruder entered the home of Edward Wilkie, president of the plaintiff Bank of Dade, and held Wilk-ie’s wife and daughter hostage. He telephoned Wilkie at the bank and threatened harm to the family hostages unless money was…