Consolidated Public Water Supply District No. C-1 v. Farmers Bank

SNYDER, Judge.

Defendant Farmers Bank appeals from a judgment entered on a jury verdict for $207,108.07 in favor of plaintiff Consolidated Public Water Supply District No. C-l on its claim that the Bank improperly charged the Water District’s account for checks paid over forged endorsements. §§ 3-404, 4-401 U.C.C. 1

The Bank relied on two defenses: first, the “padded payroll” or imposter section of the U.C.C., § 3-405; second, the negligence of the Water District in conducting its business so that an employee could, by forging endorsements, cash checks made out to the Water District’s…