Iselin-Jefferson Financial Co. v. United California Bank

Opinion

RICHARDSON, J.

In this case we consider whether a notary public may be liable to a purchaser of accounts receivable for negligently acknowledging a forged signature on a guaranty agreement. We have concluded that liability may be imposed despite the potential insolvency of the person whose signature was forged.

The case was tried upon stipulated facts which are substantially as follows: On January 18, 1971, Iselin-Jefferson Financial Company (plaintiff) agreed for $76,001.48 to purchase from Rothchild Bros. Textiles, Inc. (Rothchild) accounts receivable due Rothchild from Robert S.…