HANNA v. FIRST NATL. BANK


87 N.Y.2d 107 (1995)

661 N.E.2d 683

637 N.Y.S.2d 953

Thomas A. Hanna et al., Appellants-Respondents, v. First National Bank of Rochester et al., Respondents-Appellants. A.K.S. Jewelry Manufacturing Corp., Respondent, v. Doras Distributor, Inc., et al., Defendants, and Chase Manhattan Bank, N. A., Appellant.

Court of Appeals of the State of New York.

Argued October 25, 1995.

Decided December 5, 1995.


Attorney(s) appearing for the Case

Sean T. Hanna, Webster, for appellants-respondents in the first above-entitled action.

Lacy, Katzen, Ryen & Mittleman, Rochester (Sally A. Smith and Leslie W. Kernan, Jr., of counsel), for First National Bank of Rochester, respondent-appellant in the first above-entitled action.

Harris Beach & Wilcox, LLP, Rochester (Jeffrey W. Baker of counsel), for Fleet Bank, respondent-appellant in the first above-entitled action.

Andrew S. O'Connor, New York City, for appellant in the second above-entitled action.

Regosin, Edwards, Stone & Feder, New York City (Saul E. Feder of counsel), for respondent in the second above-entitled action.

Chief Judge KAYE and Judges TITONE, BELLACOSA, SMITH, LEVINE and CIPARICK concur.


SIMONS, J.

These two unrelated appeals involve claims by payees to recover on checks dishonored by the payor banks and address the liability imposed on a payor bank by UCC 4-302 (a). Specifically, they raise the questions whether (1) a payor bank's timely return or dishonor of an item by midnight of the day following its receipt is a defense to the bank's failure to settle the item on the day it was received...

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