Riverview Cooperative, Inc. v. First National Bank & Trust Co.

This is an action against a bank for wrongfully honoring checks drawn upon the appellant’s account by a drawer not authorized to do so.

Riverview Cooperative, Inc., is a nonprofit corporation established to provide low- and moderate-income housing in the Kalamazoo area. In 1973, its board of directors retained the services of Consumers System, Inc., hereinafter Consumers, a real-estate management firm, to oversee the day-to-day operations of Riverview. Consumers established bank accounts on Riverview’s behalf with the appellee bank in October, 1973. In 1974, Consumers was succeeded in…