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AVOCA STATE BANK v. MERCHANTS MUT. BONDING CO.

No. 2-57959.

251 N.W.2d 533 (1977)

AVOCA STATE BANK, Appellee, v. MERCHANTS MUTUAL BONDING COMPANY, Appellant.

Supreme Court of Iowa.

March 16, 1977.

Attorney(s) appearing for the Case

Smith, Peterson, Beckman, Willson & Peterson by Frank W. Pechacek, Jr., Council Bluffs, for appellant.

Peters, Campbell & Pearson by Peter J. Peters and Dennis M. Gray, Council Bluffs, and Milton L. Hanson, Avoca, for appellee.

En banc.

UHLENHOPP, Justice.

This appeal involves the issue of a bank's right to recover damages from a warehouseman's surety on account of issuance of invalid warehouse receipts by the warehouseman. Other cases involving this bond are True v. Merchants Mut. Bonding Co., 251 N.W.2d 543 (Iowa), and Michael v. Merchants Mut. Bonding Co., 251 N.W.2d 531 (Iowa).

In 1971, Claude W. Myler...

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