[Download] "Fromer Distributors v. Bankers Trust Company Et Al." by Supreme Court of New York ~ eBook PDF Kindle ePub Free

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eBook details

• Title: Fromer Distributors v. Bankers Trust Company Et Al.
• Author : Supreme Court of New York
• Release Date : January 19, 1971
• Genre: Law,Books,Professional & Technical,
• Pages : * pages
• Size : 68 KB

Description

While we agree with the determination at Special Term that there are issues of fact between plaintiff and Bankers Trust Company
concerning the three smaller checks, we find that no questions of fact exist as to the cause of action based on the check
for $13,706.86. Bankers Trust Company failed to dishonor the check before the deadline provided by the Uniform Commercial
Code and the Rules of the New York Clearing House (see Uniform Commercial Code, 4-211, 4-213, 4-301). Accordingly, payment
became final. Chemical Bank failed to exercise its right to charged back within the time provided by the statute. Consequently
it lost that right. Once payment became final, Bankers Trust Company no longer had the right to dishonor the check and it
became accountable for the amount thereof to Chemical bank. The latter bank did not have a right to accept the return, nor
to charge the amount of the check against plaintiff's account (Uniform Commercial Code, 4-212). Thus, Bankers Trust Company
is accountable to Chemical Bank for the amount of the check, and the latter bank is accountable to plaintiff (see Rock Is.
Auction Sales v. Empire packing Co., 32 Ill. 2d 269). As to the three smaller checks, Chemical Bank has no liability to plaintiff.
It received those checks in return marked dishonored before the deadline and it charged against plaintiff's account before
its deadline (Uniform Commercial Code, 4-212). Disposition Order modified (1) by inserting therein immediately after its provision that plaintiff's motion be "denied",
the following: "except that said motion is granted on the cause of action relating to the check for $13,706.86 against both
defendants", and (2) by inserting therein immediately after its provision that the cross motions be "denied", the following:
"except that the cross motion of Chemical Bank for summary judgment is granted against plaintiff on that part of the cause
of action relating to the other three checks." As so modified, the order is affirmed, with $10 costs and disbursements to
plaintiff and to defendant Chemical Bank against defendant Bankers Trust Company.

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