Underwriting Members of Lloyd's in Lloyd's Policy No. 52342 v. California Fruit Growers Exchange

HEALY, Circuit Judge.

During 1937 one Jones was in the employ of appellee Fruit Growers Exchange. Between May 1 and November 1 of that year, through Jones’ defalcations, Fruit Growers suffered a loss of $23,019.22. The United States Fidelity and Guaranty Com•pany had issued to the employer a fidelity bond, referred to in the record as the “primary bond,” limited in coverage to the sum of $1,000. This bond was in effect during the period of the defalcations. It contained no discovery clause, that is to say, it prescribed no time limit within which losses were required to be discovered in order…