The Standard Steam Specialty Company, Appellant v. the Corn Exchange Bank, Respondent

Summary

The Court reversed the Appellate Division, holding that the stenographer's indorsements were forgeries under Negotiable Instruments Law § 42, so no title passed to the bank and the bank is liable to the plaintiff for the proceeds. The decision rests on the principle that an agent authorized only to make a restrictive indorsement cannot make a general indorsement.