142 So. 156 | La. | 1932
In January, 1926, Clinton Provost became cashier of the Longstreet State Bank, and *1016 the defendant issued to the bank its fidelity insurance policy for the sum of $10,000 to secure it against any loss that it might sustain through any fraud, dishonesty, forgery, theft, embezzlement, wrongful abstraction, misapplication, misappropriation, or any other dishonest or criminal act or omission on the part of said Provost; said policy to expire only on written notice by either party, on retirement of said Provost from said employment, or "upon discovery of loss through him."
In May, 1928, the Longstreet State Bank was taken over by the plaintiff, Provost was retained as branch cashier, and the policy was continued in force and made payable to plaintiff.
On June 9, 1930, defendant issued to plaintiff its new "blanket" fidelity policy, for $25.000, covering all plaintiff's employees, including said Provost, and the former policy was canceled as to all future acts of said Provost, but continued in force as to any past act of his.
This policy covered loss "through any dishonest act whatever (italics ours)" on the part of an employee, and was to expire on written notice, or "immediately upon the discovery by the Insured of a default hereunder on the part of such employee. (Italics ours.)"
Provost was directed to make the amount good, and did so at once. And no one thought at the time that Provost had been guilty of any dishonest act. *1018
We are of opinion that the defense is without merit. The policy of June 9, 1930, covered only dishonest acts, and there could be no default on that policy except by dishonesty. And, before denouncing an employee to his bondsman as dishonest, an employer has a right to satisfy himself that the employee is in fact dishonest, and need not do so on mere suspicion. American Surety Co. v. Pauly,