Fitzgibbons Boiler Co. v. National City Bank

This is a consolidated action by a depositor against two drawee banks to recover "the sums paid out on eleven checks which bore forged endorsements of the names of the respective payees. The forgeries were committed by an employee of the plaintiff corporation. In their separate answers the defendant drawee banks deny the forgeries and allege affirmatively they are not liable for breach of the contract made with the plaintiff depositor that they would not disburse its money on forged endorsements. Their reasons are: First, the checks were bearer instruments and, therefore, payment thereof was…