MODERN HOMES CONST. CO. v. TRYON BANK & TRUST CO.

No. 286.

147 S.E.2d 37 (1966)

266 N.C. 648

MODERN HOMES CONSTRUCTION COMPANY and Fireman's Fund Insurance Company, Plaintiffs, v. TRYON BANK AND TRUST COMPANY, Defendant.

Supreme Court of North Carolina.

February 4, 1966.


Attorney(s) appearing for the Case

Hedrick, McKnight & Parham, Charlotte, for plaintiff appellants.

Fairley, Hamrick, Hamilton & Monteith, Charlotte, for defendant appellee.


SHARP, Justice.

Plaintiffs aver that they are entitled to recover from defendant on either of two theories: (1) Defendant was negligent in paying Durham, an unauthorized person, without ascertaining whether he had authority to endorse the check and receive the proceeds, when a proper investigation would have revealed his lack of such authority; or (2) defendant accepted the check when it paid it on an unauthorized endorsement. A pleader's right to recover...

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