Bank of Costa Mesa v. Losack

Opinion

THE COURT

This is a suit by Citizens Bank of Costa Mesa (formerly Bank of Costa Mesa, hereinafter Bank) against Gerard G. Losack (hereinafter defendant) for damages Bank allegedly sustained as a holder in due course. Losack gave three of his checks to Fountain Valley Appliances (hereinafter depositor) which in turn deposited them in the Fountain Valley checking account at plaintiff bank. Bank contends that, in reliance upon the deposits, it paid checks drawn upon its depositor’s account. Thereafter Bank received notice that defendant had dishonored the checks. Defendant contends Bank…