La Sara Grain Co. v. First National Bank of Mercedes

In La Sara Grain Co. v. First National Bank of Mercedes, 673 S.W.2d 558, 564 (Tex. 1984) the Court concluded that section 4.406 did not provide a defense to the defendant bank for an unauthorized transfer made from La Sara's account at the oral request of its general manager because no unauthorized signature was used. In La Sara Grain, the parties did not assert that anything like the journal vouchers were prepared, signed, and sent to the customer; indeed, a review of the briefs reveals that the petitioner argued, and the bank did not contest, that "there is no signature nor any writing whatsoever that even purportedly serves as a basis for the Bank's transfer of La Sara's money from its account to that of the personal account of the general manager." In La Sara Grain, there was no indication that such information had been provided to the customer with respect to the oral transfer.