The Bank of Commerce v. . the Union Bank.

Summary

The New York Court of Appeals affirmed the lower court's judgment, holding that the Union Bank, as drawee, was not liable for the loss incurred when it paid a bill that had been fraudulently altered in its body. Because the alteration did not involve the drawer's signature, the drawee owed no duty to detect it, and the plaintiff Bank of Commerce was entitled to recover the money paid under a mutual mistake of fact.