KINSTLINGER v. MFRS. TRUST CO.


280 A.D. 729 (1952)

Rose Kinstlinger et al., Copartners Doing Business under the Name of Trans Products Company, Respondents, v. Manufacturers Trust Company, Defendant, and Public National Bank and Trust Company of New York, Appellant

Appellate Division of the Supreme Court of the State of New York, First Department.

November 25, 1952.


Attorney(s) appearing for the Case

Sam L. Cohen of counsel (Lyonel E. Zunz with him on the brief; Moses & Singer, attorneys), for appellant.

Nathan Urdang for respondents.

COHN, CALLAHAN and VAN VOORHIS, JJ., concur with BREITEL, J.; DORE, J. P., dissents in part, in opinion.


BREITEL, J.

This is an appeal from an order denying defendant Public Bank's motion to dismiss plaintiffs' fourth cause of action for legal insufficiency. The question in the case is the scope of liability of a collecting bank to the creditors of a corporation for diverted corporate checks. The checks were drawn on another bank but deposited for collection with Public Bank by a partnership, the several partners...

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