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HUSKER NEWS CO. v. MAHASKA STATE BANK

No. 89-808.

460 N.W.2d 476 (1990)

HUSKER NEWS COMPANY, Appellant, v. MAHASKA STATE BANK, Oskaloosa, Iowa, Appellee, and South Ottumwa Savings Bank, Ottumwa, Iowa; Pella National Bank, Pella, Iowa; Iowa Trust and Savings Bank, Oskaloosa, Iowa; Doran H. Taylor d/b/a Cal's Jack & Jill, Ottumwa, Iowa; William Bainbridge d/b/a Wigg's Country Store, Oskaloosa, Iowa; and Hy-Vee Food Stores, Inc., Chariton, Iowa, Defendants.

Supreme Court of Iowa.

September 19, 1990.

Attorney(s) appearing for the Case

Richard C. Bauerle and Gregory G. Milani of Keith, Orsborn, Bauerle & Milani, Ottumwa, for appellant.

Robert K. Clements and James M. Hansen of Clements, Blomgren, Pothoven, Pabst & Strayers, Oskaloosa, for appellee.

Considered en banc.

NEUMAN, Justice.

The question on this appeal is whether the trial court erred as a matter of law when it refused to apply the "discovery rule" to a conversion action based on a forged endorsement under section 554.3419 of the Iowa Uniform Commercial Code. Finding no error, we affirm.

I. Plaintiff Husker News Company is a wholesale distributor of magazines and paperback books. One of its employees, Walter Hopf, collected payments from customers, forged Husker...

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