Question: Mrs Gordon Neely hired Louise Bradshaw as the bookkeeper for
Mrs. Gordon Neely hired Louise Bradshaw as the bookkeeper for a Midas Muffler shop they owned and operated as a corporation, J. Gordon Neely Enterprises, Inc. (Neely). Bradshaw's duties included preparing company checks for Mrs. Neely's signature and reconciling the checking account when the company received a bank statement and canceled checks each month. Bradshaw prepared several checks payable to herself and containing a large space to the left of the amount written on the designated line. When Mrs. Neely signed the checks, she was aware of the large gaps. Subsequently, Bradshaw altered the checks by adding a digit or two to the left of the original amount and then cashed them at American National Bank, the drawee bank. Several months later, Neely's hired a new accountant, who discovered the altered checks. Neely brought suit against American National Bank to have its account recredited for the altered checks, claiming American was liable for paying out on altered instruments. The bank contended that Neely's negligence substantially contributed to alterations of the instruments and thus Neely was precluded from asserting the alteration against the bank. Between Neely and American National Bank, who should bear the loss caused by Bradshaw's fraud?
Relevant QuestionsClarice Rich was employed by the New York City Board of Education as a clerk. It was her duty to prepare requisitions for checks to be issued by the board, to prepare the checks, to have them signed by authorized personnel, ...Brenda Jones, who did business as Country Kitchen, purchased some cookware from an itinerant salesman, giving him a check in the amount of $200 for the purchase price. The salesman cashed the check at the First National Bank ...Merrill Lynch, the investment firm, hired Elliot Jarvin as Director of Wealth Management Services.His duties included managing a team of 10 wealth managers who advised Merrill Lynch clients regarding their investment ...Adventure Quest, Inc., a nonprofit school, was founded and operated by Peter Drutchal, its executive director and only full-time employee. From 1994 to 1996, Adventure Quest had liability coverage with Virginia Surety ...Hellyer Avenue Limited Partnership (HALP) was formed under California law for the purpose of developing, constructing, and managing a headquarters building in California for a communications company. The principal office and ...
Post your question