Benton State Bank v. Hartford Accident & Indemnity Co.

MEMORANDUM OPINION

HENLEY, Chief Judge.

This is a suit brought on a bankers’ blanket bond issued by the defendant, Hartford Accident & Indemnity Co., to plaintiff, Benton State Bank of Benton, Saline County, Arkansas. Federal diversity jurisdiction is not questioned and is established.

Plaintiff alleges in substance that on numerous occasions and over a substantial period of time prior to November 17, 1967, it sustained losses of more than $600,000 on account of alleged fraudulent and criminal conduct on the part of one Charles P. Ouletta, a longtime and, indeed, very favored customer of the…