Question

Serena received a check drawn on the Trust Company of Florida. She endorsed the check and received payment from another bank which sent the check for collection to the Trust Company of Florida and received payment. One week later, the Trust Company of Florida discovered that the drawer of the check did not have an account with it. Apparently, Trust Company had mistaken the signature on the check for the signature of one of its customers with a similar name. The Trust Company of Florida then sought to recover the amount paid on the check from Serena. Will it recover? Does Serena have any defense?

Answer 1

Normaly the Trust Company of Florida can't recover the money from Serena because it is the fault of the company . The company or bank can't take the money back without the concern of wrong beneficiary .

But there are two optiuons there to get the money back ,

.1. The company approches to the bank and the bank can act as a facilitator between the company and Serena . and Serena herself has to return the money back to the company .  

2. If Serena refuce to give ,the Company can move legally with proof that they have issued a cheque to wrong person .

Serena can defend with many reason like donation from company or she has expected money from company with the same name etc. .