Nye & Nissen, Inc. v. Central Surety & Insurance

Plaintiffs sued to recover on a bond of indemnity covering the employees of Nye and Nissen, Inc. and its “financially controlled organizations or enterprises.” The complaint alleged that through defalcations of an em*572ployee of Puget Sound Egg Packers Corp., Ine. (hereinafter referred to as Puget Sound), a loss of over $4,000 was sustained, that due proof of loss was made in accordance with the terms of the bond, and that payment was refused. Becovery was sought in the sum of $2,500, the maximum amount covering a single employee under the bond. Judgment went for defendant upon findings which…