Stern v. President & Directors of the Manhattan Co.

This action involves the single question — whether the payee of a check whose name has been forged can recover the amount from the drawee bank or the intermediate parties who have cashed the check unless he promptly communicates to them all information he obtains for the purpose of enabling such parties possibly to recoup their loss.

In this case the plaintiff payee’s name was forged about June 1, 1928. On June 12, 1928, plaintiff began an action against one Handler, who had cashed the checks for the forger and had deposited them in his bank, the defendant, which acted as mere collecting bank,…