United States v. National City Bank of New York

LEIBELL, District Judge.

This is an action by the United States, as maker and drawee of a check, to recover the amount thereof from The National City Bank of New York, which endorsed the check and collected the proceeds thereof. The government contends that the endorsement of the payee, John Brown, was a forgery and that defendant is liable on its guarantee of prior endorsements. Defendant denies the forgery and pleads as a special defense the government’s laches in giving notice of the forgery, which deprived defendant of an opportunity for recoupment from prior endorsers. The action was…