Cairo Coop. Exch v. First Nat'l Bk. of Cunningham

Spencer, J.:

This is an action by a customer-depositor against a depositary-payor bank to recover on various checks alleged to have been wrongfully paid by the bank over forged and restrictive endorsements, and charged to the customer’s account.

Plaintiff sought relief on theories of breach of contract, breach of warranty, conversion, and negligence. Defendant relied on agency and estoppel, and also on the defense embodied in K.S.A. 84-3-405 (l)(h), commonly referred to as the fictitious payee defense. Summary judgment was entered for defendant.

Plaintiff has specified four issues on appeal, all…