COLONIAL CADILLAC v. SHAWMUT MERCHANTS BANK, N.A.

Civ. A. No. 79-389-G.

488 F.Supp. 283 (1980)

COLONIAL CADILLAC, INC., Plaintiff, v. SHAWMUT MERCHANTS BANK, N.A., et al., Defendants.

United States District Court, D. Massachusetts.

March 26, 1980.


Attorney(s) appearing for the Case

Oliver I. Ireland, Federal Reserve Bank of Boston, Boston, Mass., for Federal Reserve Bank.

Gaston, Snow & Ely Bartlett, Boston, Mass., for Shawmut Merchants Bank.

T. McLean Griffin, Gen. Counsel, Boston, Mass., for First Nat. Bank.

Richard M. Gelb, Boston, Mass., for American Underwriting.

Frederick S. Gilman, Parker, Coulter, Daley & White, Boston, Mass., for Colonial Cadillac, Inc.


MEMORANDUM AND ORDER

GARRITY, District Judge.

This case involves the liability of a Federal Reserve bank to a remote, i. e., non-sending, party for an item handled in the collection process. The plaintiff, Colonial Cadillac, Inc. ("Colonial"), alleges that the Federal Reserve Bank of Boston ("FRB") breached its duty to exercise ordinary care in the handling of drafts for collection and engaged in unfair and deceptive acts or practices in violation of the...

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