BILLS AND NOTES - EFFECT OF ENDORSEMENT "FOR DEPOSIT'' - LIABILITY OF LATER INTERMEDDLERS

Plaintiff's evidence indicated that as payee of a check she endorsed it "for deposit Lena Soma" and gave it to one Handrulis for safekeeping. On the pretense that the check was his, he gave it to Sarah Alkoff, who endorsed it in blank and deposited it at the Globe bank. The Globe bank in turn sent it through the Federal Reserve Bank for collection to the drawee bank, which paid the check. The amount of the check credited to Sarah Alkoff was paid out by the Globe bank on her checks to Handrulis.

The suit for diversion of the check and its proceeds was dismissed as to Sarah Alkoff and the Federal Reserve Bank, and the Appellate Division affirmed the ruling. Held, that if plaintiff's evidence was true, the defendants were liable for the amount of the check. Soma v. Handrulis, 277 N. Y. 223, 14 N. E. (2d) 46 (1938).