FIRST NAT. BANK OF MINEOLA v. FARMERS & M. STATE BANK

No. 279.

417 S.W.2d 317 (1967)

The FIRST NATIONAL BANK OF MINEOLA, TEXAS, Appellant, v. FARMERS & MERCHANTS STATE BANK OF ATHENS, TEXAS et al., Appellees.

Court of Civil Appeals of Texas, Tyler.

Rehearing Granted June 29, 1967.

Rehearing Denied July 20, 1967.


Attorney(s) appearing for the Case

Ramey, Brelsford, Flock & Devereux, Tom Ramey, Jr., and Michael Hatchell, Tyler, for appellant.

Brundidge, Fountain, Elliott & Churchill, L. E. Elliott, Dallas, for appellees.


DUNAGAN, Chief Justice.

The appellant brought this suit against appellees as the result of the payment by appellant of certain bank money orders issued by it, upon which the payees' names had been signed without authorization and cashed at Farmers & Merchants State Bank, which collected them from appellant through Texas Bank & Trust Company, both banks guaranteeing all prior endorsements. Appellant predicated its recovery upon two theories: (1) a legal cause...

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