Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 7

Martha Jenkins signed a promissory note and other documents relating to an $88,000 loan from First Horizon Home Loans. She alleged she had not intended to take out a loan but had been defrauded into signing the papers by her cousins, Courtney and Gail Brown, and the closing attorney, Brian Pierce. A loan proceeds check for $69,000, payable to Jenkins and drawn on Pierce's account at Wachovia Bank, National Association (Wachovia), was never received by Jenkins. Apparently Courtney Brown forged Jenkins' signature and deposited the funds into two accounts at Wachovia. Jenkins sued Wachovia. Should she recover? [ Jenkins v. Wachovia Bank, Nat. Ass'n, 711 S.E.2d 80 (Ga. Ct. App.)]