Security Etc. Bk. v. Southern Etc. Bk.

[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 736 [EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 737 The principal question presented for decision upon this appeal is whether or not, under the facts of the case, a collecting bank is legally liable to a drawee bank for moneys paid upon forged checks by the former, which had no means of determining the payor's signature, after their submission to, and honor by, the latter, through the clearing-house, in the regular course of business. On September 13, 1920, the respondent bank was carrying the account of Thing Brothers, a firm consisting of J.L. Thing and C.E. Thing, who maintained a commercial house at Potrero, in the county of San Diego. On that date appellant received by mail a letter signed "E.E. Snyder," postmarked at Tecate, B.C., Mexico, inclosing two checks drawn on The Security Commercial Savings Bank of San Diego, respondent herein, for a total of $2,002, and *Page 738 signed "Thing Bros. by J.L. Thing." The writer requested that appellant…