New York Credit Men's Adjustment Bureau, Inc. v. Manufacturers Hanover Trust Co.
| Decision Date | 08 May 1973 |
| Citation | 343 N.Y.S.2d 538,41 A.D.2d 912 |
| Parties | , 12 UCC Rep.Serv. 717 NEW YORK CREDIT MEN'S ADJUSTMENT BUREAU, INC., etc., Plaintiff-Respondent, v. MANUFACTURERS HANOVER TRUST COMPANY, Defendant-Appellant. |
| Court | New York Supreme Court — Appellate Division |
M. S. Landes, New York City, for plaintiff-respondent.
H. Landau, New York City, for defendant-appellant.
Before MARKEWICH, J.P., and NUNEZ, LANE and TILZER, JJ.
Order, Supreme Court, New York County, entered on November 6, 1972, unanimously reversed, on the law, without costs and without disbursements, and the motion granted dismissing the complaint except with respect to two checks aggregating $2,150.
Pickwick Togs, Inc., represented herein by its trustee in bankruptcy, became a depositor of the appellant bank under an agreement whereby Pickwick agreed that unless it shall notify the bank in writing within thirty days of the delivery or mailing of any statement of account and cancelled vouchers that the signature upon any returned voucher was forged, the said statement of account shall be considered correct for all purposes and the bank shall not be liable for any payment made and charged to Pickwick's account. The same agreement required the depositor to notify the bank of forged endorsements, as distinguished from forged signatures, within six months of the mailing or receipt of the monthly statements of account and cancelled checks as a condition precedent to the institution of an action to recover payment made on such checks.
Between May 3, 1968 and August 26, 1968 checks aggregating $48,780.27 were drawn on Pickwick's account bearing the forged signature of Alexander Wolfe, its president and sole stockholder. This action seeks recovery of the proceeds of those checks. On the third day of each month from June through September 1968, appellant rendered statements of account for the preceding month and returned the cancelled checks for that month. The depositor's president first learned of the forgeries in September 1968. Pickwick went into bankruptcy in November, 1968. Appellant's first notice of the forgeries was given to it by the trustee in bankruptcy in December 1968.
Special Term in denying summary judgment, noted that while rights and liabilities between a depositor and a bank may be varied by agreement, § 4--103(1) of the Uniform Commercial Code prohibits agreements by a bank to disclaim responsibility for its own lack of good faith or failure to exercise...
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