GREENBERG, LLP v. HSBC BANK

No. 152

17 N.Y.3d 565 (2011)

958 N.E.2d 77

934 N.Y.S.2d 43

2011 NY Slip Op 7144

GREENBERG, TRAGER & HERBST, LLP, Appellant, v. HSBC BANK USA et al., Respondents. (And a Third-Party Action.)

Court of Appeals of New York.

Decided October 13, 2011.


Attorney(s) appearing for the Case

Greenberg, Trager & Herbst, LLP, New York City ( Kalvin Kamien , Richard J. Lambert and Paul V. Lucas of counsel), for appellant.

Phillips Lytle LLP, Buffalo ( Preston L. Zarlock and Patricia A. Mancabelli of counsel), and Michael R. Mendola for HSBC Bank USA, respondent.

Zeichner Ellman & Krause LLP, New York City ( Barry J. Glickman of counsel), for Citibank, N.A., respondent.

Chief Judge LIPPMAN and Judges GRAFFEO, READ, SMITH and JONES concur with Judge CIPARICK; Judge PIGOTT dissents in part in a separate opinion.


OPINION OF THE COURT

CIPARICK, J.

In this dispute between a law firm and two banks, the issues presented are (1) the scope of the duty a payor bank owes to a noncustomer depositor of a counterfeit check and (2) the scope of the duty a depositary bank owes its customer when it acts as a collecting bank during the check collection process. We conclude that neither the depositary/collecting bank nor the payor...

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