We recently received a letter from an attorney advising us that his client, a corporation, claims s forged endorsement on a check drawn off our bank back in 1999. The corporation claims that the party signing the check (beneath the printed endorsement of the corporation) was never employed or affilitated with the business.

After contacting our customer, I learned that this check was one of three checks payable to the corporation for services rendered on a home remodeling job. The customer’s account was paid in full and received no notice to the contrary. Naturally, the original checks are the customer’s proof of payment and he doesn’t intend to give them up.

Who should be filing the claim to the depository bank? The attorney or the drawee bank? It seems to me the attorney has been retained by his client, and we’re doing all the work?

It seems to me that the bank that accepted the check for deposit is at fault(if any bank even is at fault-- which I'm not too sure one is). If another bank accepted the check for deposit, then it either went into the account of the party it was payable to or it didn’t. How would the paying bank know? If the check bears the endorsement of the party it was payable to, how is your bank going to determine whether the signature beneath the endorsement is affiliated with that corporation or not? I don’t even think it’s your problem.

And why is this business just now figuring this out? Obviously they don’t have the check anymore. Your customer was never told his account didn’t get paid. I would say it is not your bank’s problem -- unless you get a court order that says otherwise. In fact, I don’t even think he has a right to a copy of the check without a subpoena.