City State Bank in Wellington v. United States Fidelity & Guaranty Company

JOHNSON, Circuit Judge.

Plaintiff-appellant City State Bank in Wellington, Texas (“CSB”), sued its former bonding company, defendant-appellee United States Fidelity & Guaranty Company (“USF & G”), to recover a claim made under CSB’s Bankers Blanket Bond for losses resulting from the dishonest activity of CSB’s former president, Chester Long. The district court granted judgment in favor of defendant USF & G, and City State Bank appeals. This Court affirms.

I. BACKGROUND

CSB is a small state-chartered bank located in Wellington, Texas. CSB is significantly smaller than the only other bank in…