Anglo-California Trust Co. v. French American Bank

JORGENSEN, J.,

pro

tem.

This is an action brought by the plaintiff Anglo-California Trust Company to recover from Bank of America of California (successor to French American Bank), R. McColgan and M. D. Bailey, defendants, the sum of $1500 paid by the plaintiff bank on a forged indorsement of a cheek drawn by G. L. Crabtree on the plaintiff bank (where said Crabtree had an account), to the joint order of M. D. & Lillian Bailey. The defendant Bank of America of California filed a cross-complaint against the said defendants, R. McColgan and M. D. Bailey, to recover the same amount alleged to have been paid by it to said Bailey on the same check. Judgment was rendered by the court below in favor of plaintiff, against defendants Bank of America and Bailey, on the complaint and against both of said cross-defendants on the cross-complaint. McColgan appeals and the Bank of America of California appeals from the judgment against it.

The facts are briefly these:

Said R. McColgan, as a broker, negotiated a loan from G. L. Crabtree, a depositor in the Anglo-California Trust Company, to said M. D. Bailey and Lillian L. Bailey, his wife, for $1500, and said Crabtree drew his check on said depositary for $1500, payable to the joint order of “M. D. & Lillian L. Bailey”. Crabtree delivered the check to his broker, McColgan, for both payees, and McColgan, through his clerk, delivered the same to M. D. Bailey, who wrote on the back thereof “M. D. Bailey, Lillian L. Bailey, her attorney in fact”, below which appellant McColgan wrote his name “R. McColgan”. The check was then delivered to the French American Bank, which thereupon accepted it, placed its amount to the credit of said M. D. Bailey, and caused it to be presented to the Anglo-California Trust Company, which paid it and charged Crabtree’s account. Bailey within three days withdrew all of said money so deposited at the French American Bank and he is now and was insolvent.

Lillian L. Bailey’s name, however, had not been written on the check by her or by her authority or her consent, nor

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did she receive any money or benefit therefrom. The forgery was discovered within one year.