Peoples Bank and Trust Co. v. Wallace

Robert H. Dudley, Justice.

Appellee Claude Wallace agreed to purchase 20,000 shares of stock in Arkansas Reference Laboratories, Inc. for $50,000.00. In performance of his agreement appellee drew a $50,000.00 check on his account with appellant, Peoples Bank and Trust Company of Van Burén, made payable to “Arkansas Reference Lab.” The president of Arkansas Reference Laboratory endorsed the check “Deposit Only — North Little Rock Medical Laboratory” and deposited the money in the account of the North Little Rock Medical Laboratory, a separate corporation. After discovering the unauthorized…