Gina Chin & Associates, Inc. v. First Union Bank
Supreme Court of Virginia
500 S.E.2d 516 (1998)
Relevant factsFree
An employee of food wholesaler Gina Chin & Associates (plaintiff) forged the signature of a company officer on checks payable to suppliers, then forged the payees' indorsements and deposited the checks at First Union Bank (defendant) with a teller's assistance, siphoning off $270,488.72 over two years; Chin sued the bank for negligently accepting checks bearing both a forged drawer signature and forged indorsements, but the trial court dismissed for failure to state a claim, and Chin appealed.
IssueFree
Whether a party bearing the loss from a check containing both a forged drawer signature and a forged indorsement may recover against a bank that paid the check without exercising ordinary care.