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CLEMENTE v. HAFNER-MILAZZO

No. 64

23 N.Y.3d 277 (2014)

14 N.E.3d 367

991 N.Y.S.2d 14

2014 NY Slip Op 3291

CLEMENTE BROS. CONTRACTING CORP. et al., Appellants, v. APRILE HAFNER-MILAZZO, Also Known as APRILEANNA MILAZZO, Defendant, and CAPITAL ONE, N.A., Respondent.

Court of Appeals of New York.

Decided May 8, 2014.

Attorney(s) appearing for the Case

Dollinger, Gonski & Grossman, Carle Place ( Matthew Dollinger of counsel), for appellants.

Herrick, Feinstein LLP, New York City ( Mara B. Levin and Christopher P Greeley of counsel), for respondent.

Shearman & Sterling LLP, New York City ( Brian H. Polovoy and Melissa J Godwin of counsel), for Clearing House Association L.L.C., amicus curiae.

Judges GRAFFEO, READ, RIVERA and ABDUS-SALAAM concur with Chief Judge LIPPMAN; Judge PIGOTT dissents in part in an opinion in which Judge SMITH concurs.

OPINION OF THE COURT

Chief Judge LIPPMAN.

The primary issue presented is whether a bank and its customer may agree to shorten from one year to 14 days the statutory time period under UCC 4-406 (4) within which a customer must notify its bank of an improperly paid item in order to recover the payment thereon. In two opinions issued over 20 years ago, this Court declined to decide this issue because it was not presented directly, but questioned whether a 14...

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