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AMERICAN SEC. BANK v. AM. MOTORISTS INS.

Nos. 86-456, 86-512.

538 A.2d 736 (1988)

AMERICAN SECURITY BANK, N.A., Appellant, v. AMERICAN MOTORISTS INSURANCE COMPANY, Appellee. AMERICAN MOTORISTS INSURANCE COMPANY, Appellant, v. AMERICAN SECURITY BANK, N.A., Appellee.

District of Columbia Court of Appeals.

Decided March 7, 1988.

Attorney(s) appearing for the Case

Dale A. Cooter, with whom Donna S. Mangold, Washington, D.C., was on the brief, for American Sec. Bank.

Christopher E. Hassell, Washington, D.C., for American Motorists Ins. Co.

Before NEWMAN, FERREN and BELSON, Associate Judges.

BELSON, Associate Judge:

This appeal involves a bank's liability, under article three of the Uniform Commercial Code, for a series of checks it paid over a forged drawer's signature. Although the trial court found that the bank's customer had negligently contributed to the forgeries, it also found that the bank had not complied with reasonable commercial standards when it failed to detect the forgeries and paid the checks. The court therefore found the bank liable...

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