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SCHMUTZ v. FLEET BANK, N. A.

278 A.D.2d 19 (2000)

716 N.Y.S.2d 668

JOHN F. SCHMUTZ, as Chapter 11 Trustee for the Estate of VENTURE MORTGAGE FUND, L.P., Appellant, v. FLEET BANK, N. A., Respondent, et al., Defendant. JOHN F. SCHMUTZ, as Chapter 11 Trustee for the Estate of VENTURE MORTGAGE FUND, L.P., Appellant, v. STERLING NATIONAL BANK AND TRUST COMPANY OF NEW YORK, Respondent.

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

Decided December 5, 2000.

The complaint in each action alleges that the defendant bank cooperated with the president of the now-bankrupt limited partnership's corporate general partner (Schick) in Schick's defalcations from attorney trust accounts containing funds deposited by third parties in reliance on guaranties of repayment Schick executed on behalf of the limited partnership. The motion court correctly dismissed the complaints on the ground that plaintiff, the trustee of the limited partnership...

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