NEW YORK METRO CORP. v. CHASE MANHATTAN BANK


52 N.Y.2d 732 (1980)

New York Metro Corporation, Respondent, v. Chase Manhattan Bank, N.A., Appellant.

Court of Appeals of the State of New York.

Decided December 16, 1980.


Attorney(s) appearing for the Case

Michael J. Levin, Andrew J. Connick and Edward I. Handelman for appellant.

Miles F. McDonald, Jesse Climenko, Robert A. Katz, Joseph J. Einhorn and Laurie A. Asch for respondent.

Chief Judge COOKE and Judges JASEN, GABRIELLI, JONES, WACHTLER, FUCHSBERG and MEYER concur in memorandum.


MEMORANDUM.

The order of the Appellate Division should be reversed, with costs, and the case remitted to Supreme Court for a new trial.

In this action to impose liability on appellant bank for permitting an unauthorized withdrawal of funds from a corporate account at the direction of the corporate president, the case was defended by the bank principally on the theory that it was protected from liability under the...

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