Maryland Casualty Co. v. Hall

Citations

• 125 Miss. 792
• 88 So. 407

Syllabus

<p>1. Principal and surety. Employer ’bound to report^only facts justifying charge of larceny or embezzlement under indemnity bond.</p> <p>Where a sur'ety company has executed a bond indemnifying an employer against loss by reason of any act of an employee constituting larceny or embezzlement, under a provision of the bond requiring the employer to give written notice to the company immediately upon becoming aware of any loss which might be made the basis of a claim thereunder, the employer is not bound to report his suspicions arising from unexplained irregularities or discrepancies in the books or accounts of the employee, but notice is only required after the employer has knowledge of such facts as would justify the charge of larceny or embezzlement.</p> <p>2. Principal and surety. • Surety under indemnity bond not liable for sums owing to employer by employee discharged by improper use of employer’s other funds.</p> <p>Under an employer’s indemnity bond, providing that the company shall not be liable thereunder for any sum owing to the employer by the employee at the commencement of the term of the bond, or for any money thereafter used directly or indirectly by the employee to discharge in whole or in part any debt or obligation contracted or incurred by the employee with the employer before or during the term of the bond, the surety company is not liable for any sum which was owing to the employer at the commencement of the bond, and which the employee attempted to discharge by the improper use of other funds of the employer.</p>