David Marx was a gentleman in his 90s and a longtime customer of Whitney National Bank. His account had been in his name only until April 24, 1995, when he added his son, Stanley Marx, and his daughter, Maxine Marx Goodman, as joint owners and signatories on the account. The account names read: “David Marx or Maxine M. Goodman or Stanley B. Marx.” At that time, the bank began sending the statements to Stanley Marx.
Joel Goodman, David Marx’s grandson, visited his grandfather often and had access to his grandfather’s checkbook. Joel forged 22 checks on his grandfather’s account for a total of $22,834. The first 10 checks went unnoticed because they were cleared and the bank statement David Marx received during this time was never reviewed. The last five checks, which appeared on the May 16, 1995, bank statement, were discovered when Stanley Marx reviewed the statement. David and Stanley notified the bank and completed the appropriate forms for the five checks, which totaled $10,000. Whitney National Bank refused to pay the $10,000, and David and Stanley filed suit. The trial court granted summary judgment for David and Stanley, and Whitney appealed. Who is liable on the checks? Did David and Stanley wait too long or are they protected because they let the bank know when they did? [Marx v. Whitney National Bank, 713 So2d 1142 (La)]