Miners Savings Bank v. Royal Indemnity Co.

Opinion by

Mr. Justice Schaffer,

The action is assumpsit to recover on an indemnity bond losses sustained by plaintiff bank as a result of defalcations of one of its employees. The bond indemnified plaintiff against loss due to “a dishonest or criminal act” on the part of its officers or employees. The losses claimed were discovered in April of 1931 and covered a period from October 8,1930, to March 31,1931.

The claim is resisted by defendant on the ground that on May 21, 1930, Sharkey, the defaulter, had misappropriated $950 of the bank’s funds, and that plaintiff’s officers had knowledge of…