The Trustee was also given discretion to invade the principal of the Trust for the benefit of Dr. Bartell. Following Dr. Bartell's death, the trust corpus is to be given to a school or institution to be named by the Trustee.
Dr. Bartell died on November 8, 1987. Prior to his death, he had notified the Trustee that, due to the increasing severity of his illness, the Trustee was authorized to deal with his wife, Ann Bartell, as Dr. Bartell's agent. The Trustee and First Fidelity allege that Ann Bartell did not notify them of Dr. Bartell's death, and that they did not discover Dr. Bartell's death for more than a year.
During the year after Dr. Bartell's death, the Trustee issued nineteen checks payable to the order of Dr.Bartell in the total amount of $53,009.71. The Trustee and First Fidelity allege that Ann Bartell received these checks, fraudulently endorsed them with Dr. Bartell's signature, and deposited them in a joint checking account which she and Dr. Bartell had opened at First Interstate. First Interstate presented the checks to First Fidelity for payment, and First Fidelity, in turn, debited the Trustee's account.
First Fidelity and the Trustee are jointly prosecuting this action against Ann Bartell and First Interstate on the theory that First Fidelity or the Trustee will bear the loss caused by the forged endorsements unless Ann Bartell or First Interstate is held liable. First Fidelity and the Trustee have not settled or resolved the potential claims and defenses between First Fidelity and the Trustee. The first