Stone & Webster Engineering Corp. v. First National Bank & Trust Co.

An employee of Stone & Webster (plaintiff) forged indorsements on three checks totaling over $64,000 issued to Westinghouse, then presented the checks for payment to First National Bank & Trust (defendant), which paid them and was reimbursed by the drawee bank; the drawee bank refused to credit Stone's account for the forged checks. Stone sued First National (the collecting bank), asserting conversion of the checks; the trial court dismissed the complaint, and Stone appealed.