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SOS OIL CORP. v. NORSTAR BANK

152 A.D.2d 223 (1989)

SOS Oil Corp., Respondent-Appellant, v. Norstar Bank of Long Island, Appellant-Respondent

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

December 4, 1989

Attorney(s) appearing for the Case

Berkman, Henoch, Peterson, Kadin & Peddy (Kevin P. Simmons of counsel), for appellant-respondent.

Cole & Deitz (Joseph DiBenedetto and Jeanne M. Murphy of counsel), for respondent-appellant.

KUNZEMAN, J. P., RUBIN, EIBER and ROSENBLATT, JJ., concur.

Per Curiam.

The issue in this case involves the liability of a bank for erroneously encoding a check deposited by a customer, and is one of first impression in the State.

Described as the most widespread technological advance in bank collections since the UCC was drafted (see, Clark, Bank Deposits, Collections and Credit Cards ¶ 10.5, at 10-8 [rev ed]), the encoding of checks with magnetic ink has become...

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