GETTY PETROLEUM v. AM EXPRESS


90 N.Y.2d 322 (1997)

683 N.E.2d 311

660 N.Y.S.2d 689

Getty Petroleum Corp., Respondent, v. American Express Travel Related Services Company, Inc., Appellant, et al., Defendants.

Court of Appeals of the State of New York.

Decided June 12, 1997.


Attorney(s) appearing for the Case

Camhy Karlinsky & Stein, L. L. P., New York City (John F. Triggs, Martin E. Karlinsky and Adam D. Cole of counsel), for appellant.

Del Gadio & Tomao, Uniondale (Robert G. Del Gadio, Peter J. Tomao and Steven M. Lester of counsel), for respondent.

Judges TITONE, BELLACOSA, SMITH, LEVINE, CIPARICK and WESLEY concur.


Chief Judge KAYE.

Ordinarily, the drawer of a check is not liable on a forged indorsement. An exception to this principle is found in Uniform Commercial Code § 3-405 (1) (b) — the "fictitious payee" rule — which allocates the loss to the drawer if "a person signing as or on behalf of a * * * drawer intends the payee to have no interest in the instrument." In this case of statutory interpretation...

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