DREXEL BURNHAM LAMBERT, INC. v. 11 STONE ST. CORP.


156 A.D.2d 121 (1989)

Drexel Burnham Lambert, Incorporated, Respondent, v. 11 Stone Street Corp., Appellant, et al., Defendants, et al., Third-Party Plaintiffs, et al., Third-Party Defendants

Appellate Division of the Supreme Court of the State of New York, First Department.

December 5, 1989


In this action, plaintiff sought to recover $26,911.40 paid by plaintiff to defendant-appellant on 79 payroll checks with forged endorsements. The forged checks were payable to 79 terminated employees of plaintiff, endorsed by defendant Caplan and cashed by appellant 11 Stone Street.

Both the Civil Court and Appellant Term agreed that appellant breached its warranty of good title (UCC 3-417 [1] [a]) when it obtained payment from plaintiff. While appellant attempts...

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