Valley Bank v. Neibaur

JOHNSON, Justice.

Following the issuance of the opinion in this case, the Court granted rehearing to consider whether the Neibaurs should be precluded under I.C. § 28-3-406 from asserting Palmer’s unauthorized indorsement. This issue was raised before the magistrate judge, on appeal to the district judge, and on appeal to this Court. We did *734not specifically address the issue in our original opinion.

The statute on which Valley Bank bases its argument provides:

28-3-406. Negligence contributing to alteration or unauthorized signature.— Any person who by [that person’s] negligence substantially…