Maryland Casualty Co. v. Citizens' Nat. Bank of Los Angeles

In the latter part of 1919 the California Cotton & Factorage Company was organized as a corporation, and thereafter engaged in the business of buying, selling, handling, and dealing in cotton and cotton by-products. Under the by-laws of the company, the- secretary was vested with absolute and unrestricted power and authority to enter into, any and all contracts and agreements, and to perform any and all acts and things necessary in carrying out and fulfilling the purposes and business of the corporation. One pears was appointed secretary, and continued in that capacity until his death on May 3, 1921. Upon his appointment as secretary, the Maryland Casualty Company executed a fidelity bond wherein it agreed to reimburse the employer “for any loss, not exceeding $50,-000 of money, securities, or ether personal property (including that for which the employer may be responsible to others),, which the employer shall have sustained by reason of any act or acts of fraud, dishonesty, forgery, embezzlement, wrongful abstraction, or willful misapplication on the part of the employee, while in the performance of his duties as secretary in the service of said employer and occurring during the…