State Security Check Cashing, Inc. v. American General Financial Services, Inc.

An imposter posing as Ronald Wilder obtained a loan check from American General Financial Services (defendant), which State Security Check Cashing (plaintiff) cashed after reviewing the same driver's license and loan documents American General itself had relied on, and comparing the check against other checks previously drawn by American General that State Security had cashed without incident. The next day, before State Security presented the check to the bank, the real Wilder alerted American General to the fraud, prompting a stop-payment order; State Security sued American General for the check's value, the district court found State Security failed to exercise ordinary care and ruled for American General, and the circuit court affirmed before the Court of Appeals of Maryland granted review.