Zion State Bank & Trust Co. v. Efraim Carlson & Son, Inc.

This is an action to recover proceeds of a check cashed by plaintiff Zion State Bank and Trust Company, as a holder in due course, against defendant Efraim Carlson & Son, Inc., the maker. Initially, defendant’s bank, First Trust and Savings Bank, refused to honor the check arguing that it was not properly endorsed by the payee, Allstrom Heating. After the check was re-endorsed, defendant’s bank again refused to honor it, this time because defendant issued a stop payment order. The trial judge granted defendant’s amended motion for a summary judgment on the issue whether plaintiff was a holder…