Loerch v. National Bank of Commerce of Birmingham

The defendant, Dorothy L. Loerch, appeals from a declaratory judgment in favor of the plaintiff, National Bank of Commerce of Birmingham ("NBC"). We reverse and remand.

The controlling issue is whether the assignment and pledge of a jointly held certificate of deposit ("CD"), which was signed by only one joint owner even though the document itself specifically required the signature of both, is valid.

On January 9, 1990, Herbert Loerch purchased from NBC a $60,000 CD in the joint names of "Herbert J. Loerch or Dorothy L. Loerch." One week later, Mr. Loerch pledged the CD to NBC, guaranteeing…