Trial lawyers specializing in personal injury and civil litigation
Bank refused summary disposition after payment on co-depositor's forged signature
Arthur Michalik sued the JP Morgan Chase Bank after it allowed Michalik's designated payee to immediately remove $5,000.00 from an account after depositing a check with Michalik's forged signature. The alleged forger was Michalik's "bill paying agent" and the Bank argued that since she had the right to pay Michalik's bills out of the account, it could not be responsible for her alleged theft. The Court of Appeals ruled that the claim raised an issue of fact with regard to whether the instrument was forged, and whether the bank acted with "good faith" and in accordance with reasonable commercial standards.