Martin was employed as an accounting supervisor for Lindenwood Graphics. As part of Martinis job duties, he was responsible for submitting the payroll information to a direct deposit payroll service company retained by Lindenwood Graphics. Martin is the only Lindenwood Graphic employee designated to have contact with the payroll processing company. Martin was solely responsible for overseeing the payroll service. For 13 years Martin overstated the amount of salary and benefits for several employees to the direct deposit payroll service company. These employees received $3,238,000 in salary and benefits to which they were not entitled. Lindenwood learned of the fraud and discovered that Martin was getting a 50% kickback from the employees who received the overpayments. Lindenwood terminated Martin's employment and had him prosecuted for embezzlement. Lindenwood Graphics sought repayment of the $3,238,000 overpaid by the payroll service company to the several employees. Lindenwood claimed that Martin was not authorized by Lindenwood to submit false and fraudulent payroll information. When the payroll company refused to pay any reimbursement, Lindenwood filed a lawsuit seeking to recover from the payroll service the $3,238 000 in overpayments made because Martin was not authorized to submit false payment orders to the payroll service.

Discuss the merits of Lindenwood Graphic's claim.