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Banks Right of Subrogation Jervey was induced by fraud to enter into a contract with Glidden. As part of the transaction, Jervey wrote and delivered

Banks Right of Subrogation Jervey was induced by fraud to enter into a contract with Glidden. As part of the transaction, Jervey wrote and delivered a check to Glidden for $1,500. When Jervey discovered the fraud, she immediately ordered her bank to stop payment on the check. The bank, by mistake, ignored the stop-payment order and paid the $1,500 to Glidden. The bank must return the $1,500 to Jervey but may sue Glidden for fraud under its right of subrogation.

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