Treasury of the Philippines issued a check payable to MARTIN LORENZO who was already dead that time. Signature forged, the check was indorsed to RAMON LORENZO, then to DELIA DOMINGUEZ, then to appellant, where it was encashed with the plaintiff-appellee drawee bank.
Whether or not the drawee bank can recover from the one who encashed a check with forged signature of payee.
YES. Defendant-appellant, upon receiving the check in question from Dominguez, was duty-bound to ascertain whether the check in question was genuine before presenting it to plaintiff Bank for payment. Her failure to do so makes her liable for the loss and the plaintiff Bank may recover from her the money she received for the check. As reasoned out above, had she performed the duty of ascertaining the genuineness of the check, in all probability the forgery would have been detected and the fraud defeated.