Cashier's check issued to John & Jane Doe. Check is negotiated with an endorsement of Jane Doe with "Deposit Only" underneath. John says he hadn't seen the check. Can we file a Without Entry claim for Unauthorized Endorsement on a Cashier's Check?

Taking your information literally, the check required both indorsements (due to the "&" between the payee names) for negotiation. If John believes he suffered a loss because he received no proceeds from the check (it this mess ever gets to court, he would have to substantiate he suffered a loss), he can provide you an affidavit that he did not indorse the check and received no benefit from the check. You would then be able to file a "without entry" claim against the depositary bank for breach of its transfer and presentment warranties under the UCC. If you're paid the full amount of the check, you'll want to issue another check payable to both parties -- you really don't want to get involved in their discussions over how much each is owed.

Be very careful how you word things in your conversation or correspondence with the payee... Your position is likely that your bank did not screw up and is not responsible for assuring that John gets the amount due him. As the item was not endorsed as drawn and you apparently paid it anyway there is another side to that argument.

I would imagine that it would be even more difficult for John to prove he suffered a loss if the check were deposited into a joint account.

I just questioned and confused myself since it involved a cashier's check.

Thank you.

If I understand correctly now: The check was payable to John and Jane and it was deposited to a John and Jane account at another bank (and probably withdrawn) without his knowledge. If that's right, then John is telling you about his personal problems. Give him a Kleenex and nod sympathetically.

That is what I believe the scenario to be. And your resolution is my first choice.

^^ Hilarious!