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SCHENECTADY STEEL COMPANY INC. v. GUARDIAN LIFE INSURANCE COMPANY OF AMERICA

300 A.D.2d 854 (2002)

752 N.Y.S.2d 161

SCHENECTADY STEEL COMPANY, INC., et al., Plaintiffs, v. GUARDIAN LIFE INSURANCE COMPANY OF AMERICA, Defendant and Third-Party Plaintiff-Respondent-Appellant, et al., Defendants. FLEET BANK, Third-Party Defendant-Appellant-Respondent.

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

Decided December 19, 2002.

Carpinello, J.

This case involves an all too common defalcation, i.e., the diversion of checks from the intended recipient and subsequent forgery of the payee's indorsement. Here, plaintiffs allege that defendants Richard McCabe, Kathryn McCabe, McCabe, Carey & Associates, Inc. and MCA Administration (hereinafter the McCabe defendants) received checks drawn by plaintiff Schenectady Steel Company, Inc. payable to defendant Guardian Life Insurance Company of America...

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