Clearfield Trust Co. v. United States

A federal check was stolen, forged, and cashed at a store, which then routed it through Clearfield Trust Co. (defendant) to the Federal Reserve Bank. The government sued Clearfield Trust to recover the funds. The district court applied Pennsylvania law and ruled for Clearfield Trust, finding the government had unreasonably delayed notifying the bank of the forgery; the court of appeals reversed, and Clearfield Trust appealed to the Supreme Court.