Cumis Insurance Society, Inc. v. Republic National Bank of Dallas

GUITTARD, Justice.

Republic National Bank of Dallas has sued Cumis Insurance Society, Inc., on two contracts styled “Credit Union Discovery Bonds” issued by the society, one to Grand Rapids Teachers Credit Union of Grand Rapids, Michigan, and the other to Merced School Employees Federal Credit Union of Merced, California. The bank alleges that it delivered to the credit unions certain blank traveler’s checks, which were stolen while being held by the credit unions for safekeeping and sale, and that some of the stolen checks were completed by persons unknown and were negotiated so that the bank…