Eldon's Super Fresh Stores, Inc. v. Merrill Lynch, Pierce, Fenner & Smith, Inc.

0. Russell Olson, Justice. *

Plaintiff, drawer of a check payable to defendant Merrill Lynch, Pierce, Fenner & Smith, Inc., appeals from a summary judgment entered in favor of defendant. The appeal raises the issue of whether the payee was, as a matter of law, a holder in due course and thus not subject to the drawer’s claim that the check, possession of which it gave to its agent, was wrongfully delivered to defendant-payee in payment of the agent’s own personal obligation to defendant rather than for the benefit of plaintiff-drawer.

Eldon’s Super Fresh Stores, Inc. (hereafter Eldon’s) is a…