In November 2005, Michele Fehl, an administrative assistant recently hired by AFT Trucking, stole eight company checks from the company’s offices. She made out the checks to herself in various amounts. Fehl was not authorized to sign checks on behalf of the company. Over the next three weeks, Fehl presented the checks at Money Stop, a check-cashing service, which gave her cash for the checks. Subsequently, the checks were dishonored by AFT Trucking. It fired Fehl, who was arrested and criminally prosecuted. Money Stop brought suit against AFT Trucking to recover the funds it had disbursed. AFT Trucking asserted that Money Stop’s only recourse was against Fehl, the person who had signed the checks. Is Money Stop entitled to recover from AFT Trucking?
In November 2005, Michele Fehl, an administrative assistant …
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