Liberty National Bank & Trust Co. of Louisville v. Pep Services, Inc.

HOWERTON, Judge.

The appellant, Liberty Bank, appeals from a summary judgment dismissing its claim against Pep Services, Inc. for transactional errors between the bank’s teller and an employee of Pep while the employee was obtaining cashier’s checks for Pep payable to Gulf Oil Corporation. The facts are not disputed, and the basic question is who, as a matter of law, must bear the loss as between Liberty Bank and Pep.

Pep had an agreement with Gulf Oil Company to staff Gulf’s gasoline stations, collect the money from the individual stations, and send that money to Gulf. In order to facilitate…