Petitioner’s secretary was able to encash and deposit to her personal account about seventeen (17) checks drawn against the account of petitioner at the respondent bank. Petitioner disclaims the signatures and demands bank to restoration of funds.
Whether or not petitioner is precluded from setting up the forgery.
YES. Petitioner’s failure to examine his bank statements appears as the proximate cause of his own damage. Proximate cause is that cause, which, in natural and continuous sequence, unbroken by any efficient intervening cause, produces the injury, and without which the result would not have occurred. In the present case, the fact of forgery was not established with certainty, having compared the signature in the checks from the specimen signatures on record and satisfied themselves that it was petitioner’s.