Nora Ray, Petitioner v. Farmers’ State Bank of Hart, Texas, Respondent

Summary

The Texas Supreme Court held that Mrs. Ray was not negligent in the alteration of her check and therefore the bank could not rely on the UCC §3.406 defense; the trial court's judgment awarding her $1,850 was affirmed. The Court reasoned that negligence is a factual issue for the trier of fact and that the trial court's finding was supported by probative evidence. Justice Denton dissented, joining the Court of Civil Appeals in finding negligence.