Taylor v. Security-First National Bank

[570]

DRAPEAU, J.

Furniture Workers Union No. 3161 had a checking account with the Vernon branch of the defendant bank. The treasurer of the union observed that the statement of account furnished by the bank was “over.” It showed a credit to the union of $5,000 which was not due.

So the treasurer made out a cheek to the order of the bank for $5,000, and presented it to the president of the union for his signature. The president and the treasurer were authorized by the union to sign checks. On file with the bank was the usual signature card showing this authorization. And the treasurer had for a long time conducted the union’s financial business with the bank.

After the president signed the check, the treasurer made the following notation upon its upper left-hand corner: “Payable cashier’s check to Frank Abrams.” He took the check to the bank and requested that a cashier’s check be made out to his order. This was done. Then Mr. Abrams endorsed the cashier’s check and deposited it in his own personal account in the same bank. He later withdrew and spent the money, “trying to act like a big shot.”

When the $5,000 check was returned to the union, with the bank’s monthly statement, Mr. Abrams with chemical ink remover obliterated the words “Payable cashier’s check, etc.” and wrote on the check instead: “refund to bank for error in credit to us.”

In due time the defalcation came to light. Mr. Abrams was convicted of grand theft. His deposition was taken in the California Institution for Men at Chino.

This action was brought by the union against the bank for recovery of $5,000. Trial was by jury which, by direction of the court, rendered its verdict for defendant. The union appeals from the judgment which followed.

The essential inquiry, then, is whether there is any substantial evidence in the record supporting plaintiff’s case.

Plaintiff called but one witness, the manager of the Vernon branch, and examined him under the provisions of section 2055 of the Code of Civil Procedure. Upon the identification of this witness, the following documentary evidence was received: Ledger cards of a savings account and a commercial account of the union with the bank; signature cards authorizing any two of the president, vice-president, and treasurer of the union to sign checks on these