Benchmark Bank v. State Farm Lloyds

OPINION

MORRIS, Justice.

This is a summary judgment case involving only a question of law because the summary judgment evidence establishes undisputed facts. The legal issue we consider is whether payment of drafts made out jointly to two payees, one of whom allegedly forged the other payee’s endorsement and presented the drafts for payment, discharges the drawer’s obligation to the payee who had its signature forged. We conclude under the circumstances of this case that the drawer’s obligation is discharged as a matter of law. Therefore, we affirm the trial court’s judgment.

FACTUAL BACKGROUND

Be…