First National City Bank v. Bankers Trust Co.

Appellate Division of the Supreme Court of New York

First National City Bank v. Bankers Trust Co.

29 A.D.2d 635, 286 N.Y.S.2d 67, 1968 N.Y. App. Div. LEXIS 4911

CourtAppellate Division of the Supreme Court of the State of New York

DecidedJanuary 11, 1968

StatusPublished

This text of 29 A.D.2d 635 (First National City Bank v. Bankers Trust Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

First National City Bank v. Bankers Trust Co., 29 A.D.2d 635, 286 N.Y.S.2d 67, 1968 N.Y. App. Div. LEXIS 4911 (N.Y. Ct. App. 1968).

Pincite

Opinion

Order, entered August 15, 1967, denying interpleaded-defendant-appellant-respondent’s motion for interpleader relief, unanimously modified, on the law, to the extent of granting the cross motion of interpleaded-defendant-appellant-respondent, Chase Manhattan Bank, for summary judgment, and, as so modified, affirmed, with $50 costs and disbursements to said interpleaded-defendant-appellant-respondent and plaintiff-respondent First National City Bank payable by defendant-respondent-appellant Bankers Trust Company. Defendant Bankers Trust, by way of defense, alleges a claim for interpleader. One of the interpleaded defendants, Chase Manhattan Bank, cross-moved for summary judgment. It seeks the recovery of $40,000, the total of two cheeks drawn by Republic Textile Equipment Company on Chase, payable to Santone Construction Co. The signature of the maker of said checks had been forged. The proceeds thereof were credited to the account of Santone Construction Co. with Bankers Trust, and represented the last credit to the account. Prior to the time when the credit for the Chase cheek became final, Bankers Trust paid out of the Santone account several cheeks, leaving a balance therein of $111,232.02. No part of these payments was [636]*636derived from, the amounts paid hy Chase Manhattan. The application of the “first-in first-out” rule requires reimbursement as far as Chase Manhattan is concerned. (Carson v. Federal Reserve Bank, 254 N. T. 218, 232.) Bankers Trust is not a bona fide holder as to Chase Manhattan since it has not parted with the money it received from Chase Manhattan. Concur — Botein, P. J., Capozzoli, Tilzer, Rabin, and McNally, JJ.

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Order, entered August 15, 1967, denying interpleaded-defendant-appellant-respondent’s motion for interpleader relief, unanimously modified, on the law, to the extent of granting the cross motion of interpleaded-defendant-appellant-respondent, Chase Manhattan Bank, for summary judgment, and, as so modified, affirmed, with $50 costs and disbursements to said interpleaded-defendant-appellant-respondent and plaintiff-respondent First National City Bank payable by defendant-respondent-appellant Bankers Trust Company. Defendant Bankers Trust, by way of defense, alleges a claim for interpleader. One of the interpleaded defendants, Chase Manhattan Bank, cross-moved for summary judgment. It seeks the recovery of $40,000, the total of two cheeks drawn by Republic Textile Equipment Company on Chase, payable to Santone Construction Co. The signature of the maker of said checks had been forged. The proceeds thereof were credited to the account of Santone Construction Co. with Bankers Trust, and represented the last credit to the account. Prior to the time when the credit for the Chase cheek became final, Bankers Trust paid out of the Santone account several cheeks, leaving a balance therein of $111,232.02. No part of these payments was [636]*636derived from, the amounts paid hy Chase Manhattan. The application of the “first-in first-out” rule requires reimbursement as far as Chase Manhattan is concerned. (Carson v. Federal Reserve Bank, 254 N. T. 218, 232.) Bankers Trust is not a bona fide holder as to Chase Manhattan since it has not parted with the money it received from Chase Manhattan. Concur — Botein, P. J., Capozzoli, Tilzer, Rabin, and McNally, JJ.

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Bluebook (online)

29 A.D.2d 635, 286 N.Y.S.2d 67, 1968 N.Y. App. Div. LEXIS 4911, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-city-bank-v-bankers-trust-co-nyappdiv-1968.