California Mill Supply Corp. v. Bank of America National Trust & Savings Ass'n

Plaintiff is the drawer of a series of checks which it had issued upon the fraudulent representations of one of its employees. Defendant, Bank of America National Trust and Savings Association, is the collecting bank which had cashed and endorsed said checks, with a guarantee of prior endorsements, and had collected thereon from the drawee bank, which in turn had charged said cheeks to plaintiff’s account. Plaintiff did not discover the fraud of its employee for more than a year after the payment by the drawee bank of the last check of the series, at which time its right of action, if any,…