Manufacturers National Bank of Troy v. United States Fidelity & Guaranty Co.

Through the forgetfulness of the plaintiff’s officer, a customer’s securities were misplaced, resulting in a financial loss. The bank made good the loss, and in this action seeks to recover the amount thereof under an insurance policy issued by the defendant. Do the words of the policy cover such a case? Have the parties contracted for insurance against such an event? This appeal involves solely the meaning of the policy and an application of the clauses to the subsequent facts.

Before taking up these clauses of the policy, let us have the facts clearly before us. The bank’s customer, Edward…