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Torts Keyed to Miller
Rhode Island Hosp. Trust Natl. Bank v. Zapata Corporation
Citation:848 F.2d 291 (1st Cir. 1988)
Zapata Corporation’s (Plaintiff) employee was issuing fraudulent checks under the company’s account. Zapata did not realize the forged checks, despite the fact that it received the account statement from its bank, Rhode Island Hosp. Trust National Bank (Defendant), because Zapata did not scrutinize the statements. A couple of months later, Zapata realized that its bank had been issuing payment for the forged checks and brought suit against its bank to recover the amount of the forged check. Zapata brought its negligence suit on the grounds that it was entitled to receive reimbursement for the forgeries, despite the fact that it was negligent in failing to discover and report them, because the bank was not exercising “ordinary care.”
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