Telemedia Publications, Inc., publishes Cablecast magazine, a weekly guide to the listings of the cable television programming
Question:
Telemedia Publications, Inc., publishes Cablecast magazine, a weekly guide to the listings of the cable television programming in Baton Rouge, Louisiana. Cablecast hired Jennifer Pennington as a temporary employee. Pennington’s duties included indorsing subscription checks received in the mail with the Cablecast deposit stamp, preparing the deposit slip, and taking the checks to be deposited to City National Bank. John McGregor, the manager of Cablecast, soon noticed shortages in revenues coming into Cablecast. When he learned that Pennington had taken checks payable to Cablecast and deposited them into her personal account at Premier Bank, N.A., he confronted her. She admitted to taking $7,913.04 in Cablecast checks. Cablecast filed a suit in a Louisiana state court against Premier Bank. The bank responded in part that Cablecast was solely responsible for losses caused by the fraudulent indorsements of its employees. At trial, Cablecast failed to prove that Premier Bank had not acted in good faith or that it had not exercised ordinary care in its handling of the checks. What rule should the court apply here? Why?
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The court ruled in favor of Cablecast and awarded it 791304 Premier Bank appealed to a state interme...View the full answer
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