United States v. City National Bank & Trust Co.

MEMORANDUM AND ORDER

JOHN W. OLIVER, District Judge.

This is an action by the United States against the City National Bank and Trust Company to recover the proceeds of seventy-two checks presented by the Bank to the plaintiff as drawer and drawee of the checks. The complaint alleges that when the government agency that issued the checks, the Army Financial Center, Retired Pay Division, determined that the payee’s signatures were forgeries the Bank became obligated for the amount of the cheeks by reason of its express and implied warranties of prior endorsements. The Bank filed a third party…