Central Surety & Insurance v. O. & S. Wholesale Co.

The appellee, Wholesale Company, brought suit against appellant, Central Surety & Insurance Corporation, to recover on a verbal contract of fidelity insurance by which it alleged it was insured against the misappropriation of funds by one of its employees. The appellant denied the authority of its local agent, John W. Holman, to make the contract and cross-complained against him praying judgment in the event it should be held liable to the appellee company. Holman answered the cross-complaint, admitting having-made the verbal contract and alleging- that he had authority to do so. On the…