Prior Lake State Bank v. Groth

Thomas Gallagher, Justice.

Action by Prior Lake State Bank, referred to herein as the bank, against Lillian Groth, as administratrix of the estate of A. P. Groth, deceased, for money expended by the bank in litigation with National Surety Corporation, referred to herein as the surety company, upon a bond furnished the bank to cover its employees. The decedent, A. P. Groth, had served the bank as its cashier while this bond was in effect. He died in May of 1954.

In the fall of 1951, Federal Deposit Insurance Corporation, in examining the bank’s records, uncovered shortages in the bank’s funds…