Ralph Hegman Company v. Transamerica Insurance Co.

William D. Gunn, Justice. *

Defendant-appellant, Transamerica Insurance Company, issued a “Fidelity One Act Grain Bond,” i. e., a special employee fidelity bond, on codefendant Larkin Mergenthal,* 1 who at the time the bond was issued was an employee of Ralph Hegman Company, plaintiff-respondent. During Mr. Mergenthal’s tenure as a grain elevator manager for the plaintiff corporation, apparent shortages developed. Plaintiff corporation thereafter filed a claim for reimbursement from Mergenthal and the appellant insurer; these claims are the subject of this lawsuit. The court, sitting with a…