Rancho San Carlos, Inc. v. Bank of Italy National Trust & Savings Ass'n

THE COURT.

In July, 1928, the plaintiff had a commercial checking account with defendant bank at Monterey, California. Plaintiff had in its employ a bookkeeper named Harris, and another employee named James P. Dunnigan. It was plaintiff’s custom to deliver to Harris checks in blank signed by its superintendent for the purpose of enabling Harris to pay plaintiff’s current bills. On July 30, 1928, Harris filled in one of the checks so delivered to him for the sum of $10,000, the check being in terms payable to order, and inserted Dunnigan’s name therein as payee. He then forged Dunnigan’s…