Jeanette Frocks, Inc. v. First Produce State Bank

Murphy, Justice.

This is an appeal from a judgment entered in the district court denying recovery to plaintiff, Jeanette Frocks, Inc., for a sum representing the proceeds of fraudulent payroll checks cashed by plaintiff’s dishonest employee at defendant, First Produce State Bank. The essential issue presented by the appeal requires a construction of Minn. St. 335.052(3) (N.I.L. § 9, subd. 3) generally designated as the Banker’s Amendment.

From the record, including those facts stipulated, it appears that plaintiff company maintained a checking account with the Northwestern National Bank of…