This section contains the nature of the case and procedural background.

P's husband died in an automobile accident. Through her attorney, Daniel D. Yudow, she commenced an action against D to recover damages for the personal injuries and wrongful death. The matter was eventually settled, and D mailed to Yudow two checks totaling $ 11,500, the amount of the settlement, both of which were drawn on the Manufacturers Hanover Trust Company. One check was for $571, made payable to 'The State Ins. Fund c/o Daniel D. Yudow'. The second check was for $10,929 payable to 'Christina Hutzler Individually And As Administratrix of the Estate of Michael E. Hutzler and Daniel D. Yudow as Attorney.' Yudow indorsed the second check with his own signature and forged the signature of P, deposited it in an account in his name at Manufacturers Hanover (D). Yudow eventually closed the account and P eventually located Yudow years later. He had closed his office and was no longer in practice. P retained present counsel who made oral and written demand for payment on D in June 1973. D refused payment. Upon examination of the indorsements, the forgery was at once apparent to P. P sued D and Manufacturers Hanover (D) to recover the amount of the settlement check. P alleged negligence against D and conversion and breach of warranty against Hanover (D). P was granted summary judgment against D for the amount of the check and summary judgment was also granted to the Hanover (D) on which the check was drawn. D appealed the summary judgment and P appealed a deduction for Yudow’s services.

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