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GIRARD BANK v. MOUNT HOLLY STATE BANK

Civ. A. No. 78-539.

474 F.Supp. 1225 (1979)

GIRARD BANK, Plaintiff, v. MOUNT HOLLY STATE BANK, Defendant, v. Darlene PAYUNG and Penn Mutual Life Insurance Company, Third-Party Defendants.

United States District Court, D. New Jersey.

As Amended July 31, 1979.

Attorney(s) appearing for the Case

Archer, Greiner & Read by John B. Kearney, Haddonfield, N. J., for plaintiff Girard Bank.

Bleakley, Stockwell & Zink by Salvatore A. Alessi, Camden, N. J., for defendant and third-party plaintiff Mount Holly State Bank.

Capehart & Scatchard, P. A. by William F. Keating, Moorestown, N. J., for third-party defendant Penn Mutual Life Insurance Co.

Avena, Hendren & Friedman, P. A. by James R. Hendren, Camden, N. J., for third-party defendant Darlene Payung.

OPINION

BROTMAN, District Judge.

This case presents intriguing questions concerning commercial paper transactions and Articles 3 and 4 of the Uniform Commercial Code. In particular, the court must determine to what extent the negligence of the drawer of a check affects the liability of a depository bank for a forged indorsement under the U.C.C. and common law. The drawee bank has sued the depository bank on its presentment warranty and now seeks summary...

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