Trust Co. v. Refrigeration Supplies, Inc.

I dissent because the banks’ payment of these checks without proper indorsement did not cause the aggrieved *411joint-payee any legally cognizable loss under the facts of this case. The joint-payee materialman suffered a loss on his contract with the subcontractor, but there is no basis for shifting this loss to either bank.

Although the majority opinion fails to specify the precise basis for finding liability, it is clear to me that the majority has decided this case on a common-law conversion theory, rather than a statutory conversion theory under Code § 109A-3 — 419 (1) (c). In other words,…