Security Pacific National Bank v. Associated Motor Sales

Defendant Associated Motor Sales (hereinafter AMS) appeals from a summary judgment in favor of plaintiff Security Pacific National Bank (hereinafter SPNB).

SPNB’s complaint alleged two causes of action. The first sought to recover an overdraft of approximately $188,000 in the commercial checking account of AMS at SPNB, which resulted from the dishonor by the payor banks of approximately $311,925 in checks indorsed and deposited to AMS’s account. The second cause of action sought to impose indorser’s liability upon AMS in respect of the same dishonored checks.

In its answer, AMS admitted the allegations of paragraph 21 of the complaint which alleged that “AMS presented, endorsed and negotiated to [SPNB] for deposit numerous checks drawn by all of the other defendants, and each of them, payable to the order of AMS,” except that it denied “that the checks AMS presented, endorsed and negotiated to [SPNB] for deposit were drawn by all of the other defendants, and each of them.”

In addition, paragraph 35 of the complaint stated in particular the aggregate total of the checks from each payor and alleged “AMS endorsed all of the above defendants checks and negotiated and…