Legal Opinion
Progressive Casualty Insurance v. First Bank
District Court, S.D. Texas
Decided August 27, 1993No. Civ. A. H-91-3002Published
1Opinion of the Court
OPINION ON SUMMARY JUDGMENT
HUGHES, District Judge.
1. Introduction.
Progressive Casualty Insurance Company indemnified First Bank through a standard banker’s blanket bond. The bank cannot recover on the bond for the acts of its president who caused a loss to the bank through personal failings and business neglect. An employee’s acts of misfeasance, even of gross incompetence, are not acts of infidelity with the manifest intent to injure the bank and to benefit himself.
2. Background.
Progressive issued a bond to the bank covering loss from employee dishonesty or fraud. While he was the president…
2Cases cited8 opinions
- Federal Deposit Insurance Corporation v. St. Paul Fire and Marine Insurance CompanyCourt of Appeals for the Sixth Circuit · 1991
- Calcasieu-Marine National Bank of Lake Charles v. American Employers' Insurance Co., Louisiana Bank & Trust Co., Cross v. The Employers Liability Assurance Corp., CrossCourt of Appeals for the Fifth Circuit · 1976
- Irvin Jacobs & Co. v. Fidelity & Deposit Co. Of MarylandCourt of Appeals for the Seventh Circuit · 1953
- First Federal Savings & Loan Association of Salt Lake City v. Transamerica Insurance Company, a California Corporation, and John ClarkCourt of Appeals for the First Circuit · 1991
- Federal Deposit Insurance v. CNA CasualtyDistrict Court, D. Puerto Rico · 1991
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