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P agreed to pay bills of exchange that Sutton drew on P. A party named Lee forged Sutton’s signature on two bills to a party named Ruding. After several endorsements, D received the forged bills. D gave notice to P and presented one of the bills which P paid. P also paid the second bill as well. Eventually, P learned that Sutton’s name was forged on the bills. P sued D to get the monies returned. P claimed mistake, and he could no longer recover from Lee who had since been hanged for forgery. D claimed that because P was negligent, there could be no recovery.

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