Bob Badd works for Cal Corp He is authorized to endorse and

. Bob Badd works for Cal Corp. He is authorized to endorse and deposit

                    checks payable to Cal Corp. and to sign checks on behalf of Cal Corp.

                     In order to finance his bad habits, he has done the following things:

                    1. Stolen Al\'s paycheck from his desk draw while Al was on vacation. Bob          

                       forged Al\'s endorsement and cashed the check at Certified Check Cashing.

                    2. Stolen a blank check from Sue\'s purse, made it out to himself, forged    

                      Sue\'s signature and deposited it in his account at Union Bank. Before Sue   

                        could stop payment First Bank paid the check.

                    3. Cashed a check payable to Cal Corp. at Second Street Bank. This check  

                       was originally for the amount of two thousand dollars and Bob altered it

                       to twelve thousand dollars.

                    4. Cashed a check of Cal Corp. at Banco Bank. The check was payable to

                        Frank Friction, a fictitious employee created by Bob.

5. Stolen a promissory note in the amount of $5,000.00 which is payable to      Cal    Corp. and has as its maker Mike Martin. Upon presentment by Badd, Mr. Martin draws a check payable to Badd for the full amount which Badd deposits in his personal account at Union Bank.

             
Bob has been caught and sent to prison. He has no money or assets. Discuss the liability of all other parties with regard to each instrument. Explain your answers giving legal reasons for any conclusions stated.

Solution

In my view, there cannot be any liability of all other parties as in the first place, it is Bob Badd who is responsible for all the frauds he committed as he broke the trust of the company by converting the financial instruments in his favour in a dishonest manner. Secondly, it is the related parties which can sue him for having cheated on them through such devious means.