Glens Falls Indemnity Co. v. Bank‪.‬

This is an appeal from a judgment in favor of defendant bank in an action instituted to recover the amount of the loss sustained by a cotton mill as the result of embezzlement by its secretary and assistant treasurer of the proceeds of checks cashed by the bank. Plaintiff in the court below was the Glens Falls Indemnity Company, surety on the fidelity bond of the secretary and assistant treasurer. Having paid the amount of the loss sustained by the mill as the result of the defalcation of this officer, it instituted suit against the bank on the theory that checks payable to the mill had been wrongfully paid by the bank to the officer resulting in the loss sustained by the mill. The principal contention of plaintiff is that verdict should have been directed in its behalf, as the facts are undisputed. They are as follows: