A check from respondent Gozon was taken and forged by his trustee. It was drawn successfully against the drawee bank. Gozon demands back credit from debited amount. Petitioner bank argues that Gozon was negligent and precluded from setting up forgery.
Whether or not Gozon may recover from drawee bank.
YES. Gozon’s act in leaving his checkbook in the car while he went out for a short while can not be considered negligence sufficient to excuse the defendant bank from its own negligence. His trustee, a long time classmate and friend, remained in the same. Gozon could not have been expected to know that the said trustee would remove a check from his checkbook. Gozon had trust in his classmate and friend. He is therefore not precluded from setting up forgery as a defense.