CLEARFIELD TRUST CO. V. UNITED STATES
318 U.S. 363 (1943)
NATURE OF THE CASE: This was a review of an order dismissing an action on a guaranty of a
check.
FACTS: The Government (P) issued a check and mailed it. The check was never received by
the proper party. An endorsement was forged and it was cashed at J.C. Penney Co. They in
turn endorsed it to Clearfield Trust Co. (D). D endorsed it with a guaranty of all prior
endorsements and collected the amount from the Federal Reserve. None of the parties in the
line of transaction suspected forgery Federal officials demanded payment from Clearfield (D)
on the guaranty eight months after the forgery was discovered. D refused. P sued. The
district court applied Pennsylvania law to the case and held that the delay barred P's
claim. The court of appeals reversed. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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