St. Stephen's Evangelical Lutheran Church v. Seaway National Bank

Plaintiff, St. Stephen’s Evangelical Lutheran Church, maintained its checking account in the defendant, Seaway National Bank of Chicago. The only signator on the account was the church’s treasurer, Louis E. Ferguson. Between April 29, 1968, and January 15, 1969, he drew 32 checks on the account all payable to the defendant bank. The church admitted that except for four checks applied in payment of a loan from the bank to the church, the bank cashed each check and gave Ferguson the proceeds. The church claimed Ferguson failed to account to it for the proceeds. After a trial without a jury,…