Robinson

The question presented by the present writ of error is this: May a surety company offset liabilities incurred by it as surety for a national bank against a claim by tho receiver of the bank after insolvency, on a bond given by the surety company to indemnify the bank against loss sustained through the fraud or dishonesty of an employee? The facts in this case are identical with the facts before the court in United States Fidelity & Guaranty Co. v. Wooldridge (C. C. A.) 295 F. 847 . There one bond was executed by the surety company to a national bank to save it harmless against loss through the dishonesty of employees, and a second bond to save a railway company harmless from loss arising from a deposit in the bank. The court held, as appears from the syllabus:

The judgment in that case was affirmed ( 45 S. Ct. 489 , 69 L. Ed. -) by tho Supremo Court on May 11, 1925, three days before the submission of this case to this court. At the time of the submission, it was naturally assumed by counsel that the decision of the Supreme Court was decisive of the questions presented by the present writ of error, although counsel at that time had not been advised as to the grounds for the…