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OSCAR GRUSS & SON v. LUMBERMENS MUTUAL CASUALTY CO.

Nos. 507, 508, Dockets 33263, 33311.

422 F.2d 1278 (1970)

OSCAR GRUSS & SON, Plaintiff-Respondent and Cross-Appellant, v. LUMBERMENS MUTUAL CASUALTY COMPANY, Defendant-Appellant and Third-Party Plaintiff, and Cross-Appellee, v. Isidor BUCHMANN, Third-Party Defendant.

United States Court of Appeals, Second Circuit.

Decided March 3, 1970.

Attorney(s) appearing for the Case

Thomas A. Harnett, New York City (Joseph T. Keller, William D. Hand, Jr., New York City, on the brief), for appellant and cross-appellee.

Alfred Berman, New York City (Guggenheimer & Untermyer, Marvin E. Pollock, Leon H. Tykulsker, New York City, on the brief), for respondent and cross-appellant.

Before LUMBARD, Chief Judge, and FRIENDLY and FEINBERG, Circuit Judges.

FEINBERG, Circuit Judge:

In 1961, Lumbermens Mutual Casualty Company issued a policy of insurance, known as a Brokers Blanket Bond, to Oscar Gruss & Son, a partnership dealing in securities. The policy insured Gruss against loss caused by fraudulent acts of employees. In July 1962, Gruss notified Lumbermens that a Gruss employee had apparently committed fraudulent acts which might cause substantial claims against Gruss. Claims in large amounts did subsequently...

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