Danning

Introduction

This is an action brought by the trustee in bankruptcy of the estate of a bankrupt corporation against a payor bank for allegedly paying a check without proper authorization and charging the amount thereof against the bankrupt’s account.

Goldstein, Samuelson, Inc. (GSI) was a California corporation engaged in the business of writing and marketing options on internationally traded commodities.

Commopts, Inc. (Commopts) was a California corporation and an agent of GSI for the purpose of selling GSI options on a commission basis.

GSI’s depository was Bank of America (B/A), at which GSI opened a checking account at the Wilshire-San Vicente (Wilshire) office of B/A in the name of GSI and designated it as the “general account.”

The drawer of a $250,000 check was GSI. The payee was Commopts whose bank was Camino-California Bank (Camino), at which Commopts maintained its checking account.

The plaintiff is Curtis B. Danning (Danning), trustee in bankruptcy of GSI, the bankrupt. The defendant is B/A, which is also the appellant as well as a cross-complainant against cross-defendants Harold Goldstein, John Reed, Commopts, Inc., Eric G. Vesely and Lynette…