Citizens State Bank v. National Surety Corp.

The plaintiffs, National Surety Corporation and Dayco Corporation, alleged in the trial court that certain Dayco Corporation employees forged endorsements on checks payable to Dayco and then deposited these checks in their personal accounts maintained with the defendant, Citizens State Bank (“Bank”). National Surety Corporation partially indemnified Dayco and is a party-plaintiff under its subrogation rights. The plaintiffs pled three causes of action: (1) conversion under section 4-3-419, C.R.S. 1973; (2) moneys had and received; and (3) breach of warranty under sections 4-3-417 and 4-4-207,…