The Merchants and Farmers State Bank of Weatherford, Texas v. The Fidelity and Casualty Company of New York

TATE, Circuit Judge:

In this Texas diversity case, the issue before us is whether the district court erred, after jury verdict in favor of the plaintiff, by granting the defendant’s motion for judgment notwithstanding the verdict. The plaintiff bank had sued the defendant bonding company to recover on a “Banker’s Blanket Bond” coverage issued to the bank; by it, the bonding company had agreed to indemnify the bank for losses suffered as a result of dishonest or fraudulent acts committed by the bank’s employees. In response to special interrogatories, the jury found that the bank’s former chief…