Frederic A. Potts & Co. v. Lafayette National Bank

In March, 1931, John Eckart, an employee of the plaintiff corporation, delivered, at the defendant bank, to W. Howard Wyatt, the cashier and vice-president of the bank, two checks payable to the plaintiff and indorsed by the plaintiff: “ Pay to the order of Lafayette National Bank of Brooklyn in New York.” The plaintiff corporation owned the checks. It had a deposit account in the defendant bank. Eckart, the plaintiff’s employee who delivered the checks to Wyatt, and Wyatt, the defendant’s officer who received the checks from Eckart, conspired to divert the proceeds of the checks to Eckart.…