Lincoln National Bank & Trust Company v. The Bank of Commerce, New York Life Insurance Company v. The Bank of Commerce

PATRICK E. HIGGINBOTHAM, Circuit Judge:

The Bank of Commerce of Shreveport, Louisiana appeals from a judgment holding it liable for the face amount of a series of checks it cashed under forged endorsements. We must decide whether Louisiana law affords the payee of such checks a claim against the cashing bank, and if it does, whether the checks must have first come into his possession before that cause of action accrues. We conclude that such a payee may bring suit so long as he once had possession of the checks or the maker has actually or constructively delivered them to him. We reverse the…