Federal Deposit Ins. v. National Surety Corp.

TEHAN, District Judge.

Plaintiff has brought an action seeking to recover from the defendant a sum of money which plaintiff claims is coming to it under a Banker’s Blanket Bond issued by the defendant to plaintiff’s assignor. The Banker’s Blanket Bond purported to indemnify the Lyons State Bank, plaintiff’s assignor, against certain types of losses, including losses caused by the dishonesty of any employee. Plaintiff claims that the Lyons State Bank sustained losses by reason of the. dishonesty of a certain employee, John Bedessem, in that he concealed from the board of directors of the bank…