Maryland Casualty Co. v. Banco Popular

The facts of this case were submitted to the trial court on a stipulation approved by both parties. The stipulation is an elaborate document. What follows is a summary of its content.

Plaintiff is a foreign corporation authorized to do insurance business in Puerto Rico. Defendant is a domestic bank. During the period from July 1, 1959 to June 30, 1960, the Government of the Capital carried a current account in defendant Bank. A bond was in force during that period, plaintiff being the insurer and the Government of the Capital the insured, to be liable to the latter for any loss sustained as a…