Greenville Avenue State Bank v. Lang

BATEMAN, Justice.

The appellant Greenville Avenue State Bank appeals from a summary judgment rendered against it in favor of the appellee Harold E. Lang for the amount of a $3,000 check drawn by Lang on the Bank and paid by it on what Lang claims is a forged endorsement.

Appellee relies on the general rule that a bank may not charge against its depositor the payment of any check on the forged endorsement of the payee, 8 Tex. Jur.2d, Banks, § 268, p. 451, and that the bank is under a duty to ascertain the existence and identity of the payee, and must at its peril determine the genuineness of his…