Hartford Accident & Indemnity Co. v. Fifth-Third Union Trust Co.

ARANT, Circuit Judge.

In August, 1933, Albert Keniston sustained personal injuries alleged to have been caused by the negligent operation of a motor truck owned by Charles Heyde, insured by the Phcenix Indemnity Company, which ultimately paid Keniston $7,500 in settlement. Before Keniston was paid, however, Harry Neal Smith, an agent and adjuster for the Phoenix Company, fraudulently obtained $6,000, by collecting through appellee a draft he had drawn on the Phcenix Company payable to Kenis-ton. Appellant, pursuant to contract to indemnify the Phoenix Company against loss by forgery of…