Dominion Trust Co. v. National Surety Co.

Citations

• 221 F. 618
• 137 C.C.A. 342
• 1915 U.S. App. LEXIS 1364

Syllabus

<p>1. Insurance <$=>146—Construction of Contracts—Fidelity Insurance.</p> <p>The purpose of contracts of fidelity insurance to procure full indemnity should not be defeated, except by clear and unambiguous limitations, assented to by the parties, and all ambiguities of expression, as in other insurance contracts, are to be construed most favorably to the assured.</p> <p>[Ed. Note.—For other cases, see Insurance, Cent. Dig. §§ 292, 294-298; Dee. Dig. <$=>146.]</p> <p>2. Insurance <$=>430—Indemnity Insurance—Extent of Liability—Nature of Employé’s Dishonesty.</p> <p>Under a surety bond insuring a corporation against loss through the personal dishonesty, amounting to larceny or embezzlement, of its president, the insurer was not liable for a loss due to the act of the president in issuing, in exchange for stock held by him, new certificates for greatly increased numbers of shares, which he sold and pledged, as his acts did not amount to larceny or embezzlement, though the corporation’s loss was as complete as if money had been stolen or embezzled.</p> <p>[Ed. Note.—For other cases, see Insurance, Dee. Dig. <@=>430,]</p> <p>3. Insurance <$=>332—Indemnity Insurance—Forfeiture—Failure to Notify Insurer.</p> <p>Under a surety bond insuring a corporation against loss through the dishonesty of its president, providing that if at any time there should come to the notice or knowledge of the corporation any act, fact, or information indicating that the president was dishonest it should immediately notify the insurer, that upon discovery by it that a loss had been sustained it should immediately notify the insurer and within the time limited make and furnish claim for and proof of loss, and that failure to give such immediate notice or make such claim or such proof should relieve the company from all liability thereunder, where after the president had issued, in exchange for stock, certificates for greatly increased numbers of shares, but before the discovery thereof the corpora