Willey v. Mayer

The majority concludes that the Colorado Court of Appeals erred in determining that an agent’s signature purporting to be that of his principal was “unauthorized” under section 4-3-404(1), 2 C.R.S. (1992). Maj. op. at 1263, 1266. It therefore reverses the judgment of the court of appeals and remands the *1267case to that court for further proceedings. Maj. op. at 1266. Although I agree that the court of appeals erred, I conclude that it erred only by applying an incorrect test to determine whether a principal is precluded by negligence from defending against liability to a holder in due course. I…