Dorsey v. Houston National Bank

WILSON, Justice.

Appellants sought recovery against ap-pellee banks for the amount of several hundred checks paid by the banks over a three year period under forged endorsements. The controlling question is whether the checks were bearer instruments under Sec. 9, subd. 3 of the Uniform Negotiable Instruments Act, Art. 5932, Vernon’s Ann.Civ.Stats. It is of first impression in Texas.

Appellant authorized its checks to be paid, for our purposes, on the joint sig natures of its payroll clerk and comptroller. The clerk, who was authorized to sign the checks, made them payable to former employees,…