Espresso Roma Corporation v. Bank of America, N.A

Facts

David S. Boyd is the president of Espresso Roma Corporation and Pacific Espresso Corporation. All three entities are the appellants in this case (the “appellant”). Starting in October 1997, Joseph Montanez, and bookkeeper of the appellants downloaded company programs, stole blank checks, and printed company checks on his home computer to pay his personal bills. Montanez removed the forged cancelled checks when he sorted through the mail. The forgeries were not discovered until after Montanez left the company and Boyd found a cancelled check with a signature that he did not recognize. Upon further investigation, Boyd discovered that Montanez forged company checks in an amount totaling more than $330,000. The trial court granted summary judgment in favor of the appellee Bank of America (the “appellee”) on the ground that appellants are precluded from asserting forgeries processed more than one year before the forgery was reported.