LexisNexis (July 5, 2018, 2:16 PM EDT) -- In a recent case from Michigan, a law firm was defrauded by deposit of a counterfeit cashier’s check that prompted a partner in the firm to wire funds to the fraudster. The court ruled that the law firm must shoulder the loss, based on breach of warranty against the transfer of forged or counterfeit items. The law firm could not shift this loss to the bank based on a bank officer’s statement that the counterfeit check had “cleared.” That statement was not enough to constitute “bad faith” on the part of the bank. The Michigan decision is the latest in a long line of decisions where the court refuses to shift the loss from the gullible customer (often a law firm) to the bank. The decision seems correct....