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CONSTR. v. CHASE MANHATTAN

61 A.D.2d 628 (1978)

Underpinning & Foundation Constructors, Inc., Respondent, v. Chase Manhattan Bank, N.A., et al., Defendants, and Bank of New York, Appellant

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

March 23, 1978

Attorney(s) appearing for the Case

Joseph A. Kilbourn of counsel (James R. Sullivan with him on the brief; Bigham Englar Jones & Houston, attorneys), for Bank of New York, appellant.

Tony Berman of counsel (Roger S. Markowitz with him on the brief; Berman, Paley, Goldstein & Berman, attorneys), for respondent.

BIRNS, J., concurs with YESAWICH, J.; SANDLER, J., concurs in an opinion; MURPHY, P. J., and LUPIANO, J., dissent in an opinion by LUPIANO, J.

YESAWICH, J.

An employee of plaintiff, Underpinning & Foundation Constructors Inc., falsified invoices from plaintiff's suppliers, stole the checks written to pay these false invoices, restrictively indorsed them to the named payees and then deposited them to his own or confederates' accounts maintained with, among others, the defendant Bank of New York (BNY). When these checks were presented BNY, despite...

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