First National Bank Mineola v. Farmers & Merchants State Bank Athens

The appellant brought this suit against appellees as the result of the payment by appellant of certain bank money orders issued by it, upon which the payees names had been signed without authorization and cashed at Farmers & Merchants State Bank, which collected them from appellant through Texas Bank & Trust Company, both banks guaranteeing all prior endorsements. Appellant predicated its recovery upon two theories: (1) a legal cause of action based upon appellees guarantee of all prior endorsements and/or (2) an equitable cause of action for money had and received.