National Casualty Co. v. Caswell & Co.

Plaintiff was surety on the bond of Franklin J. Kester as trustee, who improperly diverted trust funds to his individual use; plaintiff paid this loss of $1,456 and brought suit for this amount against the defendant charging that by its wrongful issuance of its check to Kester individually and not as trustee the defalcation was made possible and hence was liable to plaintiff. Upon trial before the court defendant, moved to strike the complaint and to dismiss the suit, which motion was allowed and plaintiff appeals.

Franklin J. Kester was trustee of the Central & Northwest Corporation and had…