DANLEIGH FABRICS, INC. v. GAYNOR-STAFFORD INDUS., INC.


62 N.Y.2d 677 (1984)

Danleigh Fabrics, Inc., Appellant, v. Gaynor-Stafford Industries, Inc., et al., Defendants, and Chemical Bank, Dommerich Division, Respondent.

Court of Appeals of the State of New York.

Decided May 1, 1984.


Attorney(s) appearing for the Case

Jed R. Schlacter and Jeffrey S. Kaplan for appellant.

Kenneth J. Kelly and John B. Wynne for respondent.

Chief Judge COOKE and Judges JASEN, JONES, WACHTLER, MEYER, SIMONS and KAYE concur.


MEMORANDUM.

The order of the Appellate Division should be affirmed, with costs.

In accordance with a factoring agreement, a factor may charge back against the seller of textiles the full amount of invoices which are unpaid and disputed, even though the actual dispute which the seller has with its own customer may relate both to the goods which are the subject of the unpaid invoices and to goods previously paid for...

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