The law firm of Levy Baldante Finney & Rubenstein, P.C., had a checking account at TD Bank,

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The law firm of Levy Baldante Finney & Rubenstein, P.C., had a checking account at TD Bank, N.A. The account agreement required notice to the bank of “any problem with a check” within thirty days from when a statement showing the item was mailed. Jack Cohen, a partner at the law firm, stole more than $300,000 from the account by fraudulently indorsing twenty-nine checks that had been made payable to clients and other third parties. More than two years after the first item appeared in an account statement, Susan Huffington, the firm’s bookkeeper, discovered one of the fraudulently indorsed checks. She reviewed previous statements with images of the back of each check, compiled a list of fraudulently indorsed items, and notified the bank to recredit the account. Is the bank obligated to honor this request? Why or why not? [Levy Baldante Finney & Rubenstein, P.C. v. Wells Fargo Bank, N.A., 2018 WL 847756 (Pa.Super. 2018)] (See The Bank’s Duty to Honor Checks.)

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Business Law Text And Cases

ISBN: 9780357129630

15th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller

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