Southern Guar. Ins. Co. v. First Ala. Bank

This case presents a question not previously addressed by this Court, involving Article 4 of our enactment of the Uniform Commercial Code, entitled "Bank Deposits and Collections." The plaintiff, Southern Guaranty Insurance Company (hereinafter "Southern"), appeals from a partial summary judgment in favor of the defendant, First Alabama Bank (hereinafter "FAB").

Southern issued an insurance policy to Bay Paper Company (hereinafter "Bay Paper") insuring it against, among other things, loss from employee dishonesty. Southern brought this action as subrogee of the insured, Bay Paper.

In March…