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MONTGOMERY v. FIRST NATIONAL BANK

508 P.2d 428 (1973)

R.A. MONTGOMERY, and M & S Construction Company, an Oregon Corporation, Respondents, v. FIRST NATIONAL BANK of Oregon, an Oregon Corporation, Appellant, Evans Smith, and Besco Construction Company, Defendants.

Supreme Court of Oregon.

Decided March 23, 1973.

Attorney(s) appearing for the Case

Dean DeChaine, Portland, argued the cause for appellant. With him on the briefs were Miller, Anderson, Nash, Yerke & Wiener, Portland.

Gerald R. Pullen, Portland, argued the cause for respondents. With him on the brief was Roger G. Rose, Portland.

Before O'CONNELL, C.J., and McALLISTER, DENECKE, HOLMAN, TONGUE and BRYSON, JJ.

BRYSON, Justice.

Plaintiffs brought this action against the defendant bank for conversion of a draft in the amount of $5,000 issued by an insurance company. The draft of $5,000 was made payable to defendant Smith and plaintiff R.A. Montgomery. Smith forged Montgomery's endorsement on the draft and received full payment on the instrument from defendant bank. Defendants Smith and Besco Construction Company are nominal defendants and not parties to this appeal. The trial...

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