Nadine has a checking account with Fair &

Square Bank. One day, she lost her checkbook

and the finder was able to forge her signature
and encash the forged check. Will Nadine be able
to recover the amount debited from her checking
account from Fair & Square Bank? Justify your
answer. (3%)
Yes, Nadine should be able to recover the amount
debited from her checking account from Fair and
Square Bank. The Bank is supposed to know the
signature of its clients. The Bank was thus negligent in
not detecting the forgery of Nadine’s signature and
paying the check. Under the circumstances, there was
no negligence on the part of Nadine which would
preclude her from invoking forgery. Philippine
National Bank vs Quimpo, 158 SCRA 582