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Stone & Webster Engineering Corp. v. First National Bank & Trust Co.

Supreme Judicial Court of Massachusetts
184 N.E.2d 358 (1962)


Facts

Stone & Webster Engineering Corp. (Stone) (plaintiff) issued three checks to Westinghouse Electric Corporation (Westinghouse) in a total amount of $64,755.44. The checks were drawn on Stone’s account with The First National Bank of Boston (FNBB). An employee of Stone forged indorsements on the checks prior to delivery to Westinghouse and presented the checks for payment to First National Bank & Trust Co. (First National) (defendant). First National paid the checks and then presented the checks to FNBB, which honored the checks. FNBB refused to credit Stone’s account for the amount of the forged checks. Stone sued First National, as the bank that cashed the checks, under a theory of conversion. The trial court dismissed Stone’s complaint, and Stone appealed to the Supreme Judicial Court of Massachusetts.

Rule of Law

Issue

Holding and Reasoning (Wilkins, J.)

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