In addition, Mansi had received bank statements and failed to examine them.

In addition, Mansi had received bank statements and failed to examine them.

Category:
0
0

Mary Mansi claims that eighteen checks on her account contain forgeries but were nevertheless paid by her bank, Sterling National Bank. The checks bore signatures that, according to Mansi’s handwriting expert, were apparently “written by another person who attempted to simulate her
signature” and thus were not considered obvious forgeries. Sterling National Bank acknowledged that it did honor those eighteen checks, but nine of them were returned to the plaintiff more than one year prior to this action.
 
In addition, Mansi had received bank statements and failed to examine them.
 
a. What are the arguments that the bank is liable to Mansi for wrongfully paying the checks?

Mary Mansi claims that eighteen checks on her account contain forgeries but were nevertheless paid by her bank, Sterling National Bank. The checks bore signatures that, according to Mansi’s handwriting expert, were apparently “written by another person who attempted to simulate her
signature” and thus were not considered obvious forgeries. Sterling National Bank acknowledged that it did honor those eighteen checks, but nine of them were returned to the plaintiff more than one year prior to this action.
 
In addition, Mansi had received bank statements and failed to examine them.
 
b. What are the arguments that the bank is not liable to Mansi for paying the checks?

Mary Mansi claims that eighteen checks on her account contain forgeries but were nevertheless paid by her bank, Sterling National Bank. The checks bore signatures that, according to Mansi’s handwriting expert, were apparently “written by another person who attempted to simulate her
signature” and thus were not considered obvious forgeries. Sterling National Bank acknowledged that it did honor those eighteen checks, but nine of them were returned to the plaintiff more than one year prior to this action.
 
In addition, Mansi had received bank statements and failed to examine them.
 
c. Who should prevail? Why?

Answer and ExplanationSolution by a verified expert
Explanation Bank SN may be held responsible since: It is the bank's duty to take care of transactions related to Plaintiff M's account. Bank SN failed to do so since it has indorsed checks that P...

Explanation

Bank SN may be held responsible since:

It is the bank's duty to take care of transactions related to Plaintiff M's account. Bank SN failed to do so since it has indorsed checks that Plaintiff M has not asked for.
Bank SN is negligent and did not verify signatures before every transaction on Plaintiff M's account to avoid forgery.

Verified Answer

Plaintiff M can argue that Bank SN is liable since:
 

 Plaintiff M has never asked for the checks that the bank has indorsed.
The bank should have verified the signature before encashing the checks; the bank should have identified that the signature is false.

Purchase this answer to view it.
Login or register for free to purchase this solution with PayPal or credit cards securely


Get help with your essays and assignments

Order custom essays from top writers and get a professional paper delivered to your email on time.

Do my Paper