G.F.D. Enterprises, Inc. v. Nye

The sole issue presented by this case is whether either of the appellee banks herein may be held liable to appellants for accepting for payment at Nye’s direction the corporate checks drawn over the unauthorized signatures, or forgeries, of Nye. Because both of these banks took the checks as holders in due course, because appellant G.F.D. Enterprises’ own negligence substantially contributed to the making of the unauthorized signatures, and because no warranty action existed between the parties, we answer such query in the negative and affirm the court of appeals’ decision.

As noted by the…