Schmitz v. Firstar Bank Milwaukee

¶1. Eric M. Schmitz appeals from a summary judgment dismissing his action against Firstar Bank Milwaukee. Schmitz alleged claims of negligence and conversion against Firstar after Firstar accepted for deposit checks payable to him that he had not endorsed. The checks, paid from Schmitz's assets with Putnam,1 a co-defendant in the underlying action, were fraudulently endorsed by Schmitz's financial advisor, James O'Hearn-both with the stamp of O'Hearn's corporation, Georgetown Financial, and one with Schmitz's forged signature. Both checks were deposited in a Georgetown account and Schmitz did not receive the proceeds of this transaction.2 ¶2. Schmitz argues that the circuit court erred (1) in its determination that the transaction between O'Hearn and Firstar was a valid negotiation of the check when Firstar accepted a check made payable only to Schmitz which did not contain his endorsement and deposited it in an account of a third party and (2) in its determination that the limited powers of attorney which Schmitz granted to Georgetown in 1992 were binding as to O'Hearn's fraudulent acts in 1996 and 1998 and that those limited powers of attorney authorized Georgetown to negotiate the checks in question on Schmitz's behalf.