Wheat State Service Corp. v. Colfax National Bank

KELLY, Judge.

Colfax National Bank appeals the judgment, after trial to the court, that the bank negligently transferred funds deposited in the name of Wheat State Service Corporation. We affirm.

Plaintiff Richard O’Donnell shared the financial interest in plaintiff Wheat State Service, a Kansas corporation, with W. L. Woolliscroft. Woolliscroft was a director of Colfax National Bank and had recently resigned as its president when he opened an account with the bank in the name of Wheat State Service by depositing a $90,000 check issued to the corporation.

Based on Woolliscroft’s own…