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LIBERTY NAT. B. & T. CO. OF LOUISVILLE v. NATIONAL SURETY CORP.

No. 15445.

330 F.2d 697 (1964)

LIBERTY NATIONAL BANK & TRUST COMPANY OF LOUISVILLE, Plaintiff-Appellant, v. NATIONAL SURETY CORPORATION and Maryland Casualty Company, Defendants-Appellees.

United States Court of Appeals Sixth Circuit.

April 17, 1964.

Attorney(s) appearing for the Case

Argued by and on brief W. G. Hume, Louisville, Ky., Brown & Eldred, Louisville, Ky., of counsel, for appellant.

Argued by William A. MacKenzie, Louisville, Ky., John G. Crutchfield, Louisville, Ky., on brief, Jones, Ewen & MacKenzie, Louisville, Ky., of counsel, for appellees.

Before O'SULLIVAN, PHILLIPS and EDWARDS, Circuit Judges.

EDWARDS, Circuit Judge.

Plaintiff bank suffered major losses as a result of swindles perpetrated by two concerns, Gateway Discount Company and York Car Rental Service, Inc. The losses totaled $798,715.93. In both instances the basic mechanism involved in the swindle was for the two companies to present to the bank for its purchase at discount notes secured by automobile chattel mortgages and auto leasing agreements made out in York and Gateway's favor and signed by...

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