Sidney S. Goosen, Trustee in Bankruptcy of Yellowstone Clinic & Hospital, Inc. v. Indemnity Insurance Company of North America

STARR, District Judge.

The appellant, trustee in bankruptcy of the Yellowstone Clinic and Hospital, Inc., a Michigan corporation (herein referred to as Yellowstone), appeals from an order of the district court dismissing his action to recover on an indemnity bond issued by the appellee, a Pennsylvania corporation (herein referred to as Indemnity).

On October 3, 1952, Indemnity issued its so-called blanket position bond whereby it agreed to indemnify Yellowstone against any loss of money or property caused by the fraud or dishonesty of its employees. Said bond provided in part:

“Section 14. At…