Title Ins. Co. v. Comerica Bank-California

At issue in this appeal is the applicability and scope of the “impostor rule,” which makes an indorsed check effective if the drawer was induced to issue the check by an impersonator of the payee. (Cal. U. Com. Code, § 3404, subd. (a); Cal. U. Com. Code, former § 3405, subd. (l)(a).) Plaintiff Title Insurance Company of Minnesota contends the trial court erroneously applied this rule in sustaining the demurrer of the drawee bank, respondent Comerica Bank — California (Bank), to plaintiff’s complaint for negligence. We agree that the impostor rule is not applicable under the circumstances presented, and accordingly reverse the judgment of dismissal.

Allegations of the Complaint

A general demurrer presents the same question to the appellate court as to the trial court—namely, whether the plaintiff has alleged sufficient facts in the complaint to justify relief on any legal theory. (B & P Development Corp. v. City of Saratoga (1986) 185 Cal.App.3d 949, 953 [ 230 Cal.Rptr. 192 ]; Shahvar v. Superior Court (1994) 25 Cal.App.4th 653 [ 30 Cal.Rptr.2d 597 ].) Accordingly, in reviewing an order sustaining a demurrer, we assume the truth of all material facts properly pleaded in…