Town of Hamden v. American Surety Co.

HINCKS, District Judge.

This is an action brought by the town of Hamden against the surety on the official bond of its town treasurer for the loss, resulting from the failure of the Hamden Bank & Trust Company, of town funds deposited by defendant’s principal in said bank. Underlying the specific points raised by this demurrer to the complaint is the question of law relating to the extent of the liability of a custodian of public funds in Connecticut: Is the liability of such a custodian that ordinarily attaching to a bailee for hire? Or is he liable as an insurer, irrespective of fault or…