Bikeflip wrote:Imma change the facts a bit, as I was thinking about this and got confused.
Let's say B stole the check from A. B transferred to C (and C was a valid HDC). C deposited the check at his bank, a different bank from A. C bank sent the check to A bank. A bank cleared the check, and C bank credited C's account. After this, A finds out that his check was stolen, and A is pissed. A can sue A bank, as A bank violated presentment warranties, and A bank can do the same to C bank. But can either A or A Bank sue C under present or transfer warranties? Can A sue C bank under either warranty?
Alright, we're getting to the edge of where I feel comfortable, but this is what I see.
Preface: we have changed from a note to a draft because we're dealing with checks now. I will assume that B forged a signature on the check (either the drawers or the payee's.)
I don't know what legal mechanism - if any - A can use against A's Bank to demand a credit to his account. For purposes of this part, I'll just assume they will credit his account to keep up good relations. BUT if someone knows how A could force A's Bank to credit his account the amount missing, I'd love to know what it is.
A's Bank can sue C's Bank for violation of the presentment warranties, one of which says that the drawer has authorized the issuance.
C's Bank can sue C for violation of the transfer warranties which has the same warranty from above and the additional one that all signatures (including indorser's) are authentic.
C can sue B for violation of the transfer warranties.
B should go to jail (whether for larceny, larceny by trick or false pretense, WTF knows.)
EDIT: Just saw your edit. I'm not really sure about suing someone who you didn't transact with (privity, I guess). For sure, what you'll want to do on the bar is show off that you know everyone who can sue someone else.