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BAGBY v. MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.

Nos. 72-1511, 73-1191.

491 F.2d 192 (1974)

Anna C. BAGBY, Individually and as Guardian of Kenneth Bagby and Dixie Bagby, Minors, Plaintiff, v. MERRILL LYNCH, PIERCE, FENNER & SMITH, INC., Appellant, v. COMMERCE BANK OF KANSAS CITY, Appellee, v. TRADERS NATIONAL BANK and City National Bank and Trust Co., Fourth-Party Defendants. Anna C. BAGBY, Individually and as Guardian of Kenneth Bagby and Dixie Bagby, Minors, Plaintiff, v. MERRILL LYNCH, PIERCE, FENNER & SMITH, INC., Defendant, v. COMMERCE BANK OF KANSAS CITY, Appellee, v. TRADERS NATIONAL BANK and City National Bank & Trust Company, Appellants.

United States Court of Appeals, Eighth Circuit.

Decided January 15, 1974.

Rehearing and Rehearings Denied February 6, 1974.

Attorney(s) appearing for the Case

F. Philip Kirwan, Kansas City, Mo., for Merrill Lynch.

John C. Thurlo and Richard K. Andrews, Kansas City, Mo., for Commerce Bank.

Robert K. Ball, II, Kansas City, Mo., for Traders National Bank.

Before HEANEY, ROSS and STEPHENSON, Circuit Judges.

Rehearing and Rehearings En Banc Denied February 6, 1974.

STEPHENSON, Circuit Judge.

This appeal involves an interpretation of § 3-406 of the Uniform Commercial Code, as adopted in Missouri, which specifies that negligence which "substantially contributes to * * * the making of an unauthorized signature * * *" will preclude the drawer from asserting a forgery.

The appeal is a consolidation of two diversity actions originally brought in...

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