CONTRACTS - ILLEGALITY - RIGHT OF SURETY OF BANK OFFICER TO RECOVER EMBEZZLED BANK FUNDS LOST IN GAMBLING

Authors

James W. Mehaffy, University of Michigan Law SchoolFollow

Abstract

A, president of B bank in South Dakota, embezzled funds which he used in trading in grain futures with D, a broker. Neither A nor D intended any actual delivery of the grain. P, surety for A, after having paid the bank for A's defalcation, sued D to recover the money A lost. Held, P can recover. Burke Grain Co. v. St. Paul-Mercury Indemnity Co., (C. C. A. 8th, 1938) 94 F. (2d) 458.

Recommended Citation

James W. Mehaffy, CONTRACTS - ILLEGALITY - RIGHT OF SURETY OF BANK OFFICER TO RECOVER EMBEZZLED BANK FUNDS LOST IN GAMBLING, 37 Mich. L. Rev. (1939).
Available at: https://repository.law.umich.edu/mlr/vol37/iss3/13