States v. First National Bank

Citations

• 203 Pa. 69
• 52 A. 13
• 1902 Pa. LEXIS 653

Syllabus

<p>Banks and banking — Fraud—Two innocent parlies — Forged draft — Impersonation — Notice.</p> <p>As between two innocent parties he who by first acting makes loss possible by inducing the other to act, must bear it.</p> <p>An executor received letters purporting to be signed by a legatee. As a matter of fact the legatee was dead, and the letters were written and signed by her daughter at the dictation and under the direction of her father. The executor bought a draft for the amount of the legacy to the order of the legatee, and sent it in a letter addressed to her. The husband received it and procured the daughter to forge the name of his deceased wife, and secured the money. The executor did not until nearly four years after he discovered the fraud notify the bank that its draft had been paid on a forged indorsement. Held, that no recovery could be had against the bank.</p>