American Alliance Insurance Co v. Capital National Bank of Sacramento

The plaintiff has appealed from a summary judgment which was rendered against it under section 437c of the Code of Civil Procedure, in a suit against The Capital National Bank of Sacramento, for damages sustained as a result of having paid several fraudulent drafts presented by an agent and employee of plaintiff, upon which the agent *788had forged the names of the payees and appropriated the proceeds to his own use. The names of the payees were certified by the agent of plaintiff as genuine. The plaintiff was insured against the dishonest conduct of its agent by a surety company, which is not a…