Cherryvale Grain Co. v. First State Bank of Edna

Lewis, J.:

Cherryvale Grain Company (CGC) operated a grain elevator in Cherryvale, Kansas. The Read family had owned and operated the business in Cherryvale and the vicinity thereof for over 35 years. At all times relevant to this lawsuit, John Read was president of CGC, having succeeded his father, Robert, in that position in 1988.

CGC conducted most of its banking business at the First State Bank of Edna (Bank), CGC sued the Bank for damages as a result of several notes which were accepted by the Bank even though they bore forged signatures. After consideration of various factors, CGC paid…