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CAL. MILL SUPPLY CORP. v. BANK OF AMERICA

Docket No. L.A. 21055.

36 Cal.2d 334 (1950)

223 P.2d 849

CALIFORNIA MILL SUPPLY CORPORATION (a Corporation), Appellant, v. BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION (a National Banking Association), Respondent.

Supreme Court of California. In Bank.

November 9, 1950.

Attorney(s) appearing for the Case

E. Briggs Howorth for Appellant.

Samuel B. Stewart, Jr., Hugo A. Steinmeyer, G.L. Berrey and George L. Beckwith for Respondent.

Morrison, Hohfeld, Foerster, Schuman & Clark as Amici Curiae on behalf of Respondent.

SPENCE, J.

Plaintiff is the drawer of a series of checks which it had issued upon the fraudulent representations of one of its employees. Defendant, Bank of America National Trust and Savings Association, is the collecting bank which had cashed and endorsed said checks, with a guarantee of prior endorsements, and had collected thereon from the drawee bank, which in turn had charged said checks to plaintiff's account. Plaintiff did not discover the fraud of its employee...

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