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ARTHUR DOOLEY & SON, ETC. v. JOHNSON

No. 5-78.

422 So.2d 1270 (1982)

ARTHUR DOOLEY & SON OF LOUISIANA, INC. v. Maurice JOHNSON, et al.

Court of Appeal of Louisiana, Fifth Circuit.

Rehearing Denied December 17, 1982.

Attorney(s) appearing for the Case

H. Bruce Shreves, Simon, Peragine, Smith & Redfearn, New Orleans, for Nat. Sur. Corp., intervenor-appellee.

C. Ellis Henican, Jr. and Robert Angelle, Henican, James & Cleveland, New Orleans, for Arthur Dooley & Son of Louisiana, Inc., plaintiff-appellee.

Thomas G. Donelon, Donelon, Canella & Donelon, Metairie, and Eugene R. Preaus, Virginia N. Roddy, Phelps, Dunbar, Marks, Claverie & Sims, New Orleans, for William T. Quirk & Jefferson Bank & Trust Co., defendants-appellants.

Before BOUTALL, KLIEBERT and CURRAULT, JJ.

BOUTALL, Judge.

This is a suit in tort against a bank for cashing checks of the plaintiff corporation made out to one of its subcontractors. The subcontracting company was secretly operated by one of the plaintiff's own employees, as part of a scheme to embezzle or improperly obtain money from his employer. The negligence for which the bank is alleged to be liable to the plaintiff is that the bank, when cashing the checks, allowed the employee-subcontractor to endorse...

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