Cignetti v. American Trust Co.

DEVINE, J. pro tem.*

We are faced with the necessity again of deciding which of two innocent parties must bear the loss caused by the perfidy of Gladys McCormick, as we had to do in the ease of Hagen v. Silva, ante, p. 199 [293 P.2d 143]. In that case, we were engaged with the subject of authority to collect principal as related to admitted authority to collect interest. In this case, authority of the agent to collect both principal and interest is not in dispute, but the question is whether or not the agent had authority to endorse commercial paper made payable to the principal.

Plaintiff, a…