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In Forged Indorsement Case, Kentucky Court Applies Displacement Principle And Rejects Discovery Rule

LexisNexis (August 23, 2017, 12:56 PM EDT) -- In a recent forged indorsement case from Kentucky, the court got the bank off the hook on a motion to dismiss.  The court applied two oft-litigated rules of check-fraud law: (1) the legal framework of Articles 3 and 4 of the UCC displaces the plaintiff's common-law claims and (2) the UCC's three-year statute of limitations governs, without any "discovery rule" to toll it.  On both issues, the Kentucky decision is consistent with the strong weight of authority.

The Kentucky case.  In Devine v. Devine, No. 16CI-6101...
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