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BANK OF INDIA v. WEG & MYERS

257 A.D.2d 183 (1999)

691 N.Y.S.2d 439

BANK OF INDIA, Appellant-Respondent, v. WEG AND MYERS, P. C., Respondent-Appellant.

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

June 8, 1999.

Attorney(s) appearing for the Case

Allen Green of counsel, New York City (Kalnick Klee & Green, L. L. P., attorneys), for appellant-respondent.

Stuart J. Miller of counsel, New York City (John C. Lankenau on the brief; John C. Lankenau & Associates, attorneys), for respondent-appellant.

SULLIVAN, J. P., ROSENBERGER and LERNER, JJ., concur.

OPINION OF THE COURT

TOM, J.

This is an action by a lending institution to recover insurance proceeds, covering the loss of the secured property, from the debtor's law firm, which, in custody of the insurance check, and under protest by the lender, released the funds, not to the lender, but to the defaulting debtor, after the law firm also deducted its legal fees therefrom.

In 1984, plaintiff Bank of India advanced funds to Pali Fashions, Inc. Pali...

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