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NATIONAL SUR. CORP. v. CITIZENS STATE BANK

No. 78-647.

593 P.2d 362 (1978)

NATIONAL SURETY CORPORATION, a New York Corporation, and Dayco Corporation, an Ohio Corporation, Plaintiffs-Appellants, v. CITIZENS STATE BANK, d/b/a Citizens Bank, a State Banking Corporation, Defendant-Appellee.

Colorado Court of Appeals, Division III.

As Modified On Denial of Rehearing January 18, 1979.

Certiorari Granted April 16, 1979.

Attorney(s) appearing for the Case

Kenneth C. Groves, Weinshienk, Miller, Goldburg & Borus, Denver, for plaintiffs-appellants.

Weller, Friedrich, Hickisch & Hazlitt, John R. Hickisch, Denver, for defendant-appellee.

VanCISE, Judge.

Plaintiffs alleged in their complaint that certain employees of plaintiff Dayco Corporation forged endorsements on checks payable to Dayco and then deposited these checks in their own personal accounts maintained with the defendant, Citizens State Bank. Plaintiff National Surety Co., pursuant to its "blanket crime policy" issued to Dayco, indemnified Dayco for part of the loss, and is a party under its subrogation rights. Plaintiffs pleaded three claims...

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