Huber Glass Co. v. First National Bank of Kenosha

The law concerning the duty of a bank towards its depositor was summarized in Wussow v. Badger State Bank. 2 Since their relationship is grounded in contract, a bank can only make payments from a depositor’s account in accordance with proper authorization and is bound to restore any amount paid out on forged checks. A bank can only avoid this strict liability where the “depositor is in equity estopped to assert that the bank is absolutely liable.” 3 To do this successfully, the bank must show (1) that it was without fault in failing to detect the forgeries, and (2) that the depositor was…