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H. JOHN HOMAN CO. v. WILKES-BARRE

233 N.J. Super. 91 (1989)

558 A.2d 42

H. JOHN HOMAN COMPANY, INC., PLAINTIFF-APPELLANT, v. WILKES-BARRE IRON AND WIRE WORKS, INC. AND THOMAS LINDSTROM & COMPANY, INC., DEFENDANTS, AND FIRST EASTERN BANK, N.A., DEFENDANT-RESPONDENT.

Superior Court of New Jersey, Appellate Division.

Decided May 11, 1989.

Attorney(s) appearing for the Case

Brian F. McDonough argued the cause for appellant (Brennan and Bernardin and Shanley & Fisher, attorneys, Michael G. Brennan, on the brief).

William E. Reifsteck argued the cause for respondent (Capehart & Scatchard, attorneys).

Before Judges PRESSLER, SCALERA and STERN.

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

This appeal raises a narrow but fundamental question respecting accounts-receivable financing. If an account debtor has a defense or setoff which would enable him to withhold all or a part of the payment of the account but nevertheless, by mistake or negligence or without knowledge of a defense, he tenders full payment to an assignee for value of the account, who accepts it without notice of defenses, may...

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