Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N.A.

CourtNew York Court of Appeals
Writing for the CourtKAYE; SMITH
Citation623 N.Y.S.2d 529,647 N.E.2d 741,85 N.Y.2d 20
Decision Date14 February 1995
Parties, 647 N.E.2d 741 OSWEGO LABORERS' LOCAL 214 PENSION FUND et al., Appellants, v. MARINE MIDLAND BANK, N.A., Respondent.

Page 529

623 N.Y.S.2d 529
85 N.Y.2d 20, 647 N.E.2d 741
OSWEGO LABORERS' LOCAL 214 PENSION FUND et al., Appellants,
v.
MARINE MIDLAND BANK, N.A., Respondent.
Court of Appeals of New York.
Feb. 14, 1995.

[85 N.Y.2d 22] [647 N.E.2d 743]

Page 531

Blitman & King (Donald D. Oliver and Charles E. Blitman, of counsel), Syracuse, for appellants.

Hancock & Estabrook (Janet D. Callahan, of counsel), Syracuse, for respondent.

OPINION OF THE COURT

KAYE, Chief Judge.

This appeal by two union funds from dismissal of their action against a bank focuses on the meaning of the phrase "[d]eceptive acts and practices" as used in General Business [85 N.Y.2d 23] Law § 349. We conclude that there are questions of fact as to whether the bank's acts constituted conduct prohibited by the statute.

According to the undisputed facts, plaintiffs Pension Fund and Welfare Fund are not-for-profit associations that administer pension benefits and health insurance for union members and their beneficiaries. Both Funds had dealt with defendant Marine Midland Bank since the 1960's, when the Bank became their corporate trustee, and since at least 1973 the Bank had been investment advisor for the Welfare Fund.

On May 19, 1976, Robert Bradshaw, administrator of both Funds, met with Bruce Whitney, Marine's vice-president and branch manager of the East Side Oswego office. Whitney had attended meetings of the Funds' trustees and was known to Bradshaw. Bradshaw told Whitney that he wanted to open an interest-bearing savings account for the Pension Fund, which at the time had moneys in non-interest-bearing checking accounts at Marine.

Marine offered two types of savings accounts--one for individuals, another for commercial entities. For commercial entities, Federal Regulation Q (12 CFR § 217 et seq.) capped the principal upon which interest could be paid--a maximum of $100,000 through 1979, and a maximum of $150,000 thereafter. Not-for-profit entities were exempt from this regulation. To effectuate its own compliance with Regulation Q, Marine used blue signature cards for for-profit commercial customers and green cards for nonprofit commercial entities. In opening the savings account for the Pension Fund with an initial deposit of $10,000, Whitney without explanation gave Bradshaw a blue signature card. Although the card was designated "Commercial Savings," it did not indicate that it was for profit-oriented entities, nor did it reveal that interest would not be paid on deposits in excess of $100,000.

The signature card stated that the account was subject to the Bank Rules Governing Commercial Savings Deposits with Marine Midland Bank. These rules, which were not printed on the signature card itself, governed "every savings deposit * * * by a corporation, partnership or other association operated for profit * * * or by the United States, any State or any county, municipality or political subdivision thereof." The Bank rules continued:

"d. Applicable to commercial Depositors only and not to governmental-unit Depositors: Under Federal[85 N.Y.2d 24] regulations, the amount of Depositor's Savings Deposit or Deposits with Bank may not exceed $100,000. Accordingly, no interest will be earned on any amount in Depositor's Deposit account or accounts in excess of $100,000, and such excess amount shall be deemed to be a demand deposit."

Nearly a year later, in March 1977, Bradshaw, this time acting for the Welfare Fund, opened a second savings account with Marine. Again, Whitney provided him with a blue, for-profit account, signature card. In total, four of the Funds' trustees executed

Page 532

[647 N.E.2d 744] blue signature cards for the two accounts. The parties differ as to whether Bradshaw was furnished a copy of the Bank rules in connection with the opening of either account.

Roughly seven years after the accounts were opened, in January 1984, Whitney advised the Funds that Marine had not been paying interest on principal in either account exceeding the cap, which allegedly resulted in lost interest of $30,060.26. Plaintiffs commenced this action against the Bank for the lost interest, claiming in their single cause of action that the Bank's actions were deceptive acts and practices within General...

To continue reading

Request your trial
1032 practice notes
  • M & T Mortgage Corp. v. White, Nos. 04-CV-4775 (NGG) (VVP)
    • United States
    • United States District Courts. 2nd Circuit. United States District Court (Eastern District of New York)
    • 26 de agosto de 2010
    ...(S.D.N.Y.2004); Boule v. Hutton, 320 F.Supp.2d 132, 137-38 (S.D.N.Y.2004); Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, 85 N.Y.2d 20, 623 N.Y.S.2d 529, 647 N.E.2d 741 (N.Y.1995). "The conduct need not be repetitive or recurring but defendant's acts or practices must have ......
  • Black Radio Network, Inc. v. Nynex Corp., No. 96 CIV. 4138(DC).
    • United States
    • United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
    • 14 de abril de 1999
    ...Tricon Leasing Corp., 84 F.3d 629, 636 (2d Cir.1996) (citing Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N.A., 85 N.Y.2d 20, 623 N.Y.S.2d 529, 532, 647 N.E.2d 741 (Ct.App. As the Second Circuit has noted, § 349 "was not intended to be a `sword to be wielded in business-v......
  • In re Libor-Based Fin. Instruments Antitrust Litig., 11 MDL 2262 (NRB)
    • United States
    • United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
    • 4 de agosto de 2015
    .... —must charge conduct of the defendant that is consumer-oriented." Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N.A., 85 N.Y.2d 20, 25, 647 N.E.2d 741, 744 (1995). The test is not whether a particular plaintiff is an individual consumer, for in Oswego itself, a union pen......
  • Marcus v. AT & T CORP., No. 95 Civ. 9765 (MBM)
    • United States
    • United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
    • 21 de agosto de 1996
    ...respect, and (2) that plaintiff has been injured as a result. Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N.A., 85 N.Y.2d 20, 25, 623 N.Y.S.2d 529, 532, 647 N.E.2d 741, 744 (1995); Ortho Pharmaceutical Corp. v. Cosprophar, Inc., 32 F.3d 690, 697 (2d Cir.1994). The New Yo......
  • Request a trial to view additional results
1042 cases
  • M & T Mortgage Corp. v. White, Nos. 04-CV-4775 (NGG) (VVP)
    • United States
    • United States District Courts. 2nd Circuit. United States District Court (Eastern District of New York)
    • 26 de agosto de 2010
    ...(S.D.N.Y.2004); Boule v. Hutton, 320 F.Supp.2d 132, 137-38 (S.D.N.Y.2004); Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, 85 N.Y.2d 20, 623 N.Y.S.2d 529, 647 N.E.2d 741 (N.Y.1995). "The conduct need not be repetitive or recurring but defendant's acts or practices must have ......
  • Black Radio Network, Inc. v. Nynex Corp., No. 96 CIV. 4138(DC).
    • United States
    • United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
    • 14 de abril de 1999
    ...Tricon Leasing Corp., 84 F.3d 629, 636 (2d Cir.1996) (citing Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N.A., 85 N.Y.2d 20, 623 N.Y.S.2d 529, 532, 647 N.E.2d 741 (Ct.App. As the Second Circuit has noted, § 349 "was not intended to be a `sword to be wielded in business-v......
  • In re Libor-Based Fin. Instruments Antitrust Litig., 11 MDL 2262 (NRB)
    • United States
    • United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
    • 4 de agosto de 2015
    .... —must charge conduct of the defendant that is consumer-oriented." Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N.A., 85 N.Y.2d 20, 25, 647 N.E.2d 741, 744 (1995). The test is not whether a particular plaintiff is an individual consumer, for in Oswego itself, a union pen......
  • Marcus v. AT & T CORP., No. 95 Civ. 9765 (MBM)
    • United States
    • United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
    • 21 de agosto de 1996
    ...respect, and (2) that plaintiff has been injured as a result. Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N.A., 85 N.Y.2d 20, 25, 623 N.Y.S.2d 529, 532, 647 N.E.2d 741, 744 (1995); Ortho Pharmaceutical Corp. v. Cosprophar, Inc., 32 F.3d 690, 697 (2d Cir.1994). The New Yo......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT