Cambridge Trust Co. v. Commercial Union Insurance

As a result of manipulation by an employee of its check proofing and transit system, the plaintiff Cambridge Trust. Company (the bank) claims to have lost $187,125. Commercial Union Insurance Company (CU), which had is sued to the bank a form of fidelity bond called a financial institutions bond, paid only $14,703 1 on the bond. That amount CU acknowledged as stolen; the balance of the loss it ascribed to the bank’s carelessness. The bank brought an action on its contract with CU and obtained a jury verdict of $128,050, to which the trial judge added $10,516 in court costs, plus statutory…