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RHODE ISLAND HOSP. TRUST NAT. BANK v. ZAPATA CORP.

No. 87-1890.

848 F.2d 291 (1988)

RHODE ISLAND HOSPITAL TRUST NATIONAL BANK, Plaintiff, Appellee, v. ZAPATA CORPORATION, et al., Defendants, Appellees. Zapata Gulf Crews, Inc., Defendant, Appellant.

United States Court of Appeals, First Circuit.

Decided June 1, 1988.

Attorney(s) appearing for the Case

James T. Murphy, with whom Matthew T. Oliverio and Hanson, Curran & Parks, Providence, R.I., were on brief, for defendant, appellant.

Barbara S. Cohen, with whom Anthony F. Muri and Licht & Semonoff, Providence, R.I., were on brief, for plaintiff, appellee Rhode Island Hosp. Trust Nat. Bank.

Before COFFIN, Circuit Judge, ALDRICH, Senior Circuit Judge, and BREYER, Circuit Judge.

BREYER, Circuit Judge.

The issue that this appeal presents is whether Zapata Corporation has shown that the system used by Rhode Island Hospital Trust National Bank for detecting forged checks — a system used by a majority of American banks — lacks the "ordinary care" that a bank must exercise under the Uniform Commercial Code § 4-406(3) (1977), embodied here in Rhode Island General Laws, § 6A-4-406(3) (1985). The question arises out of the...

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