Triffin v. Somerset Valley Bank
Superior Court of New Jersey, Appellate Division
777 A.2d 993 (2001)
Check-cashing agencies cashed 18 counterfeit Hauser (defendant) paychecks bearing a facsimile signature identical to the company president's authorized signature, in good faith and without notice of any defect, before Hauser's bank Somerset Valley (defendant) dishonored them; Triffin (plaintiff) purchased the checks from the agencies and sued, and the trial court granted him summary judgment, finding the agencies were holders in due course whose status passed to Triffin and that Hauser failed to show the agencies had notice of the forgery.
Whether a person who acquires a negotiable instrument from a holder in due course also acquires the transferor's rights as a holder in due course.