Wisconsin Statutes
Wis. Stat. § 403.406 (2026)
Negligence contributing to forged signature or alteration of instrument
✓ laws through the 2025-26 session (checked Sept. 2026)
Find cases:
SyfertCases citing this section
WI-LEGdocs.legis.wisconsin.gov
JustiaChapter on Justia
CornellLII Search
CasesGoogle Scholar
403.406(1)(1) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person who, in good faith, pays the instrument or takes it for value or for collection.
403.406(2)(2) Under sub. (1), if the person asserting the preclusion fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the loss.
403.406(3)(3) Under sub. (1), the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under sub. (2), the burden of proving failure to exercise ordinary care is on the person precluded.
403.406 AnnotationAlthough a claim for misrepresentation may “supplement” the provisions of the Uniform Commercial Code, it may not supplant them. A bank customer’s failure to comply with this section and s. 404.406 precluded the customer’s claim for strict-liability misrepresentation. Weber, Leicht, Gohr & Associates v. Liberty Bank, 2000 WI App 249, 239 Wis. 2d 461, 620 N.W.2d 472, 99-1557.
Notes of Decisions
Cited in 6
cases, 1972–2000 · leading case: Fid. & Deposit Co. of Maryland v. First Nat'l Bank of Kenosha, 297 N.W.2d 46 (Wis. Ct. App. 1980).
Fid. & Deposit Co. of Maryland v. First Nat'l Bank of Kenosha, 297 N.W.2d 46 (Wis. Ct. App. 1980). “” 7 First National qualifies as an “other payor” for purposes of sec. 403.406, Stats. Although only the drawee “pays” for purposes of some sections under the code, 8 a broader construction should be given the term “payor” in this section.”
Allied Ins. Ctr., Inc. v. Wauwatosa Sav. & Loan Ass'n, 546 N.W.2d 544 (Wis. Ct. App. 1996). “Section 403.406, STATS., provides that "any person who by his or her negligence substantially contributes.”
Weber, Leicht, Gohr & Assocs. v. Liberty Bank, 2000 WI App 249, 620 N.W.2d 472. “gal duty to disclose its check-handling procedures, and whether it was a question of fact for the jury to decide if Liberty voluntarily *465 assumed a duty to disclose its check-handling procedures to Weber, we do not discuss these intriguing issues because in our view any such…”
Winkie, Inc. v. Heritage Bank of Whitefish Bay, 299 N.W.2d 829 (Wis. 1981). “The first of these arguably applicable preclusions appears in sec. 403.406, Stats. That section of the statutes provides that: “Any person who by his negligence substantially contributes to a material alteration of the instrument or to the making of an unauthorized signature is…”
Prudential Ins. Co. v. Marine Nat. Exch. Bk. of Milwaukee, 371 F. Supp. 1002 (E.D. Wis. 1974). “, §§ 403.406 and 404.406, Wis.Stats. It is clear that where the draftsmen of the U.”
Prudential Ins. Co. of Am. v. Marine Nat'l Exch. Bank, 55 F.R.D. 436 (E.D. Wis. 1972). “” The plaintiff argues that the facts stated in the fourth affirmative defense “are insufficient to constitute a defense [under the Uniform Commercial Code § 3-406, § 403.406, Wis.Stats.] to the cause of action pleaded by the plaintiff.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.