Advanced Alloys, Inc. v. Sergeant Steel Corp.

Appellate Terms of the Supreme Court of New York

Advanced Alloys, Inc. v. Sergeant Steel Corp.

79 Misc. 2d 149, 360 N.Y.S.2d 142, 12 U.C.C. Rep. Serv. (West) 1173, 1973 N.Y. Misc. LEXIS 1264

Appellate Terms of the Supreme Court of New York·Decided July 19, 1973·Published·Cited by 2 cases

Opinion

Memorandum. Order unanimously reversed, with $10 costs to abide the event, and motion for summary judgment denied.

While section A-404 of the Uniform Commercial Code protects a bank which pays a stale check so long as it acts in good faith, it does not eliminate the requirement of ordinary care which a bank must observe in all its dealings (Granite Equip. Leasing Corp. v. Hempstead Bank, 68 Misc 2d 350; see, also, Novak v. Greater N. Y. Sav. Bank, 30 N Y 2d 136). In our opinion, there is an issue of fact as to whether, under all the circumstances, defendant Chase Manhattan Bank, N. A., acted with due care in this transaction. On a prior motion by the plaintiff, the defendant Chase Manhattan Bank urged that there were questions of fact requiring a full plenary trial.

Concur — G-roat, P. J., Margett and Rinaldi, JJ.

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Memorandum. Order unanimously reversed, with $10 costs to abide the event, and motion for summary judgment denied.

While section A-404 of the Uniform Commercial Code protects a bank which pays a stale check so long as it acts in good faith, it does not eliminate the requirement of ordinary care which a bank must observe in all its dealings (Granite Equip. Leasing Corp. v. Hempstead Bank, 68 Misc 2d 350; see, also, Novak v. Greater N. Y. Sav. Bank, 30 N Y 2d 136). In our opinion, there is an issue of fact as to whether, under all the circumstances, defendant Chase Manhattan Bank, N. A., acted with due care in this transaction. On a prior motion by the plaintiff, the defendant Chase Manhattan Bank urged that there were questions of fact requiring a full plenary trial.

Concur — G-roat, P. J., Margett and Rinaldi, JJ.

Advanced Alloys, Inc. v. Sergeant Steel Corp., 79 Misc. 2d 149, 360 N.Y.S.2d 142, 12 U.C.C. Rep. Serv. (West) 1173, 1973 N.Y. Misc. LEXIS 1264 (N.Y. Ct. App. 1973).

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79 Misc. 2d 149 (Advanced Alloys, Inc. v. Sergeant Steel Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Opinion

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