Bank of Mulberry v. Fireman's Fund Insurance

memorandum: opinion

H. FRANKLIN WATERS, District Judge.

Plaintiff, Bank of Mulberry, brought this diversity suit to collect proceeds under a fidelity bond issued by defendant, Fireman’s Fund Insurance Company. The bond insured the Bank against losses resulting from the dishonest or fraudulent acts of its employees. The Bank alleged that during 1978 it suffered losses as a result of the dishonest or fraudulent acts of its former president, Joe A. Arnold, and that it is entitled under the bond to reimbursement for these losses.

The case was tried to a jury, and on September 24,1982, the jury…