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UNDERPINNING v. CHASE

46 N.Y.2d 459 (1979)

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

Court of Appeals of the State of New York.

Decided February 8, 1979.

Attorney(s) appearing for the Case

Joseph A. Kilbourn and James R. Sullivan for appellant.

Tony Berman and Roger S. Markowitz for respondent.

Chief Judge COOKE and Judges JASEN, JONES, WACHTLER and FUCHSBERG concur with Judge GABRIELLI.

GABRIELLI, J.

We are called upon to determine when, if ever, the drawer of a check may sue a depositary bank which accepts the check and pays out the proceeds in violation of a forged restrictive indorsement. We conclude that in such a circumstance the drawer may have a cause of action against the depositary bank, based on either money had and received or conversion...

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