Edmund Jezemski, estranged and living apart from his wife, Paula, was administrator and sole heir-at-law of his deceased mother’s estate, one asset of which was real estate in Philadelphia. Without Edmund’s knowledge or consent, and with the assistance of John M. McAllister, an attorney, and Anthony DiBenedetto, a real estate broker, Paula arranged for a mortgage on the property through Philadelphia Title Insurance Company. Shortly before settlement, Paula represented to McAllister and DiBenedetto that her husband would be unable to attend the closing on the mortgage.
She appeared at McAllister’s office in advance of the closing accompanied by a man whom she introduced to McAllister and DiBenedetto as her husband. She and this man, in the presence of McAllister and DiBenedetto, executed a deed conveying the property from the estate to her husband and herself as tenants by the entireties and also executed the mortgage. McAllister and DiBenedetto were witnesses. Thereafter, McAllister, DiBenedetto, and Paula met at the office of the Title Company on the closing date, produced the signed deed and mortgage, and Paula obtained from Title Company its check for the mortgage loan proceeds of $15,640.82, payable to the order of Edmund Jezemski and Paula Jezemski individually and to Edmund as administrator.
Paula cashed the check, bearing the purported indorsements of all the payees, at Penns Grove National Bank and Trust Company. Edmund received none of the proceeds, either individually or as administrator. His purported indorsements were forgeries. In the collection process the check was presented to and paid by the drawee bank, Fidelity-Philadelphia Trust Company, and charged against the drawer Title Company’s account. Upon discovery of the existence of the mortgage, Edmund brought an action which resulted in the setting aside of the deed and mortgage and the repayment of the amount advanced by the mortgagee. Title Company then sued the drawee bank (Fidelity) to recover the amount of the check, $15,640.82. Is the indorsement effective? Explain.