Aetna Casualty and Surety Co. v. Hepler State Bank

Foth, C.J.:

This action was brought against the defendant Hepler State Bank for conversion effected through its payment of a series of checks each bearing the unauthorized indorsement of the payee.

Plaintiff Aetna Casualty and Surety Company issued an employees’ fidelity bond to Columbian Hog and Cattle Powder Company. From 1973 to about July 15, 1977, Columbian employed one Ted Orton as a commission salesman to sell feed to farmers in southeastern Kansas. Orton also bought feed for his own account for use in his own livestock operations. Orton’s employment agreement with Columbian called for…