I have decided to resubmit the claim to bank “A” and refer them back to section 3-405 (b). In reviewing this section of the UCC the depository does have some responsibility pertaining to this fraud. If bank “A” exercised ordinary care, then fraud could have been prevented or reduced at least to a bare minimum. Bank “A” accepted 25-30 items, totaling a little over $100K, in which none of the items were in the name of their customer. During verbal conversation they asked me to resubmit the claim in writing, detailing my arguments, and an amount that I see as fair for settlement.
My argument:
1. The items were third party checks and at the time of acceptance, the depository bank guaranteed the endorsement.
2. Under UCC 3-405 (b) the depository bank did not exercise ordinary care, which aided in the result of fraud.
3. They are responsible up to three years for forged endorsements
Do I have any other arguments?
Settlement:
I do agree that the employer is responsible for not auditing their internal controls to control internal fraud. I also agree that the depository bank should take responsibility, per my arguments above. The checks were issued between 10/01 thru 9/02. Should I ask for settlement in full or should I request for half.
Personally- I am very determined individual and never ask for less
. I think I have a good case. What do you suggest?