Liberty Bank v. Fidelity & Deposit Co.

The defendants gave their bond to the plaintiff to indemnify and save the plaintiff harmless from any loss “ through any dishonest or criminal act of any of the employees ” of the plaintiff “ wherever any such act may be committed and whether committed directly or by collusion with others.” In a previous action between the plaintiff and a customer of the plaintiff relating to a note and the right to hold collateral on a banker’s lien as security for such note, judgment went for the defendant, establishing that the note was not executed by the customer to cover the purchase price of stock…