Laird v. Employers Liability Assurance Corp.

Layton, Chief Justice:

The plaintiffs conduct a stock brokerage business. The defendant insured them against losses arising from having sold as agent or broker for another any securities, as defined in the policy, “which shall have been forged, counterfeited, raised or otherwise altered, or lost or stolen”.

Francis I. duPont & Co. delivered to Walls & Company certificates for 200 shares of duPont common stock properly endorsed for transfer, and received its check for the purchase price. Walls & Company, although it did not have sufficient funds in the bank on which the check was drawn to honor…