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TRADERS STATE BANK v. CONTINENTAL INSURANCE CO.

No. 639-70.

448 F.2d 280 (1971)

The TRADERS STATE BANK, GLEN ELDER, KANSAS, Plaintiff-Appellee, v. The CONTINENTAL INSURANCE COMPANY, Defendant-Appellant.

United States Court of Appeals, Tenth Circuit.

September 9, 1971.

Attorney(s) appearing for the Case

John Q. Royce, Salina, Kan., for plaintiff-appellee.

F. Philip Kirwan, Kansas City, Mo. (Charles N. Henson, Topeka, Kan., with him on the brief), for defendant-appellant.

Before MURRAH, PICKETT and DOYLE, Circuit Judges.

MURRAH, Circuit Judge.

The financial machinations of E. C. Riley gave rise to this dispute between Traders State Bank and Continental Insurance Company concerning the latter's liability on a Bankers Blanket Bond. After trial on stipulated facts the District Court rendered judgment for Traders. We reverse.

The stipulated facts reveal that in late 1966 the bank suffered a loss of over $191,000 due to a check kiting scheme by Riley. At the time this loss was...

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