LUFTHANSA GERMAN AIRLINES v. BANK OF AMERICA

No. 79-4842.

652 F.2d 835 (1981)

LUFTHANSA GERMAN AIRLINES, Plaintiff-Appellant, v. BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided August 3, 1981.


Attorney(s) appearing for the Case

Alan A. D'Ambrosio, New York City, for plaintiff-appellant.

Douglas R. Backeberg, San Francisco, Cal., for defendant-appellee.

Before HUG, POOLE and REINHARDT, Circuit Judges.


HUG, Circuit Judge:

This case concerns a bank's right to "charge back" to its customer's account the amount of a check deposited by the customer and dishonored by the drawee bank. The issue is whether the telephonic notice of the dishonor by the Federal Reserve Bank to the depositary bank's central clearing center triggered the bank's duty to notify the customer of dishonor. The decision requires an interpretation of relevant sections of the California Commercial...

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