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ROYAL TRUST BANK v. NAT. UNION FIRE INS. CO.

No. 85-5316.

788 F.2d 719 (1986)

ROYAL TRUST BANK, N.A., Plaintiff-Appellant, v. NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA., Defendant-Appellee.

United States Court of Appeals, Eleventh Circuit.

May 6, 1986.

Attorney(s) appearing for the Case

Patricia H. Thompson, Miami, Fla., for defendant-appellee.

Welbaum, Zook, Jones & Williams, Robert A. Hingston and Betsy L. Warwick, Miami, Fla., for plaintiff-appellant.

Before GODBOLD, Chief Judge, FAY, Circuit Judge, and PECK, Senior Circuit Judge.

GODBOLD, Chief Judge:

Royal Trust Bank incurred a loss of $331,986.38 as a result of a check kiting scheme perpetrated by one of its customers through an account that was managed by one of the bank's employees, Cynthia Aids. The bank brought this diversity suit seeking to recover under a fidelity bond issued by defendant insurance company, National Union.1

At trial National Union maintained that the loss was not covered by the...

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