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KNESZ v. CENTRAL JERSEY BANK & TRUST CO.

188 N.J. Super. 391 (1982)

457 A.2d 1162

STEVE KNESZ, PLAINTIFF-APPELLANT, v. THE CENTRAL JERSEY BANK AND TRUST CO. OF FREEHOLD, A NEW JERSEY CORPORATION, DEFENDANT-RESPONDENT, v. CERRATO, O'CONNOR, MEHR & SAKER, A PROFESSIONAL CORPORATION, THIRD-PARTY DEFENDANT-RESPONDENT.

Superior Court of New Jersey, Appellate Division.

Decided November 24, 1982.

Attorney(s) appearing for the Case

Frederick R. Stem argued the cause for appellant (Stem and Stem, attorneys).

Donald J. Rapson argued the cause for defendant-respondent The Central Jersey Bank and Trust Co. of Freehold (Lautman, Rapson, Henderson & Mills, attorneys and special counsel to McCue & McCue, and cocounsel for third-party defendant Cerrato, O'Connor, Mehr & Saker).

Richard A. Admur, attorney for third party defendant Cerrato, O'Connor, Mehr & Saker, filed a brief on its behalf.

Before Judges MICHELS, PRESSLER and TRAUTWEIN.

The opinion of the court was delivered by PRESSLER, J.A.D.

The issue raised by this appeal, unaddressed in this State since its adoption of the Uniform Commercial Code, N.J.S.A. 12A:1-101 et seq., is whether the payee of a check whose indorsement has been forged has a cause of action in conversion against the depositary-collecting bank which has paid on the forged indorsement. We hold that N.J.S.A. 12A:3-419(3), relied on by defendant bank, does...

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