A. Claims against United Bank . Count X - Conversion. Plaintiff has brought an action for conversion against United Bank pursuant to section 3420 of the Pennsylvania Commercial Code. United Bank has moved for Summary Judgment on the ground that the instruments at issue were not forged and therefore, section 3420 does not apply. United Bank is entitled to Summary Judgment, but for a different reason.
Checks are instruments.
In this action, Plaintiff is the issuer of the checks that she alleges were converted by United Bank. By the terms of the statute, Plaintiff cannot maintain an action for conversion under section 3420, therefore, Summary Judgment as to Count X is granted. Plaintiff also brings a claim against United Bank pursuant to section 3404 of the Pennsylvania Commercial Code which provides rules for cases involving Imposters and Fictitious Payees. C.S.A. 3404 cmt. The effect of section 3404 is to place the risk of loss on Plaintiff but allow her to offset this loss by bringing an action against United Bank for its failure to exercise ordinary care.