Sec.-First Nat'l. Bank of L.A. v. Bank of Am. Nat'l. Tr. & Sav. Ass'n.

The plaintiff, Security-First National Bank, issues numerous checks drawn on itself. It was the sole duty of one of plaintiff’s officers, A. M. Hadley, to sign such checks. Each check was presented to him with a debit slip, and if the slip showed that the check was properly authorized and that funds were available in the proper account, he signed the check. Among the employees who prepared debit slips and wrote checks, but who were not authorized to sign checks, was Dee L. Ellis, Jr., head of the accounting division of the trust department. Ellis prepared a number of checks for Hadley’s signature, drawn to the order of L. W. Bobbitt, together with debit slips in the usual form on the basis of which Hadley signed the checks. There was such a person as Bobbitt, but he knew nothing of the transaction, and Ellis did not intend that he receive any of the checks. Ellis had become acquainted with one of defendant’s employees and had no difficulty in establishing an account with defendant as agent for Bobbitt. He indorsed the name of L. W. Bobbitt on the cheeks, deposited them in this account, and later withdrew the funds deposited. Defendant presented the checks through the Los Angeles…

I dissent. In my opinion the judgment should be reversed for the reasons stated by the District Court of Appeal of the Second Appellate District, Division Three, in an opinion prepared by Justice Hartley Shaw, acting pro tempore, and concurred in by the then Presiding *162 Justice B. Rey Schauer and Justice Parker Wood. I am satisfied that that opinion correctly interprets the statute and case law of this state as applied to the facts and reaches a conclusion which is consonant with reason and justice. I adopt it as a reflection of my views on the subject. It is as follows:

“There are two defendants in this action, but, since the defendant bank only is before us on this appeal, the word ‘defendant’ where hereinafter used, refers to it only, unless otherwise indicated. The plaintiff issued certain checks drawn upon itself, which came to the defendant upon forged indorsements. The defendant impressed its clearing house stamp upon these cheeks, presented them to plaintiff through the clearing house and obtained payment. This stamp included the words, ‘all prior endorsements guaranteed,’ and plaintiff brings this action to recover on that guaranty. Judgment went for plaintiff and…