Vilm Milling Co. v. Kansas Casualty & Surety Co.

Citations

• 104 Kan. 790
• 180 P. 782
• 1919 Kan. LEXIS 361

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Indemnity Bond — Agent’s Fidelity Bond — Recitals in Bond — Estoppel to Deny Agency. In a fidelity bond given by a surety company, it was recited that the person whose honesty and fidelity was guaranteed was an agent or employee of the plaintiff, who brought an action on the bond to recover for the fraudulent withholding and misappropriation of plaintiff's property, and in the contract between the plaintiff and the agent the latter was designated as an agent, and in the answer of the surety company he was likewise described as an agent of the plaintiff; and, therefore, it is held that the recitals and admissions of the surety company estop it to deny that the person whose fidelity was guaranteed was an agent or employee of the plaintiff.</p> <p>2. Same — Misappropriation of Funds — Proof Required to Warrant Recovery on Bond. Evidence showing that the agent had fraudulently withheld property and money of the plaintiff, and had appropriated it to his own use, is sufficient to warrant a recovery upon the bond in which the defendant undertook to reimburse the plaintiff for any loss that it might sustain by reason of the fraud or dishonesty of the agent amounting to larceny or embezzlement in connection with his duties and obligations; and the fact that the agent had not been prosecuted for embezzlement or that the proof was not strictly the same as is required in a prosecution for embezzlement, will not defeat a recovery.</p>