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CITY OF NEW YORK v. CHASE MANHATTAN BANK

162 A.D.2d 177 (1990)

City of New York, Respondent, v. Chase Manhattan Bank, N. A., Appellant and Third-Party Plaintiff-Respondent-Appellant. Citibank, N. A., Third-Party Defendant-Appellant-Respondent

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

June 12, 1990

The plaintiff City of New York issued a check, drawn on Chase Manhattan Bank, which was stolen after mailing and which was deposited with a forged indorsement in an account at Citibank, the third-party defendant. The city became aware of the theft and notified the payor bank, defendant Chase, to stop payment, but the check had already been paid.

Plaintiff commenced this action against Chase, which in turn brought a third...

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