Although a customer always had a clear duty to inform its bankers of any forgery of which it was aware insofar as it related to dealings with the bank, that duty did not operate when the knowledge of the customer was only constructive and not actual. In this case the bank had become concerned and had warned the customer of the need to enquire as to the history of transactions, but such warning did not create an actual knowledge on the customers part of the reality of forgery eventually discovered.
Times 19-Jan-2000,  EWHC Ch 190
England and Wales
Updated: 19 May 2022; Ref: scu.85035