Decibel Credit Union v. Pueblo Bank & Trust Co.

Opinion by

Judge RULAND.

This case requires us to address which party must bear the loss for amounts paid on forged checks. Defendant, Pueblo Bank & Trust Company, appeals from the summary judgment awarded to plaintiff, Decibel Credit Union. We reverse and remand the case for further proceedings.

A thief stole blank checks furnished by Decibel to one of its checking account customers. During a period of approximately 40 days, the thief forged the signature of the customer on a series of 14 checks totaling $2,350. Each of the checks was cashed at Pueblo Bank where the thief had a bank account.

On…