Richfield Nat. Bank of Richfield v. American Surety Co. of New York

REEVES, District Judge.

Under the doctrine of subrogation, the appellee American Surety Company, of New York was granted a decree against the appellant for the recovery of a specified sum of money.

The school district, appearing as one of the appellees, had designated the appellant as a depository for a part of its funds. The said surety had become bound under a contract of suretyship’ for the treasurer of said school district. The treasurer defaulted and absconded. The surety duly paid the full amount of his defalcations and sought reimbursement from the appellant upon the grounds that it had…