Summary
finding that a bank's negotiation of a check without a signature guarantee is done at its own risk and "constitutes prima facie negligence" in the case of a forgery, "indicat[ing] . . . the absence of good faith and adherence to a reasonable acceptable commercial banking standard."
Summary of this case from Lawyers' Fund v. Gateway State BankOpinion
February 23, 1994
Appeal from the Civil Court of the City of New York, New York County, Kibbie F. Payne, J.
Wrenn Schmid, East Islip (James F. Murphy of counsel), for appellant.
Morgan, Melhuish, Monaghan, Arvidson, Abrutyn Lisowski, New York City (Warren C. Nitti of counsel), respondent pro se.
Order entered August 27, 1993 affirmed, with $10 costs.
We agree that the defendant depositary-collecting bank failed to demonstrate the existence of a genuine question of fact requiring a trial on the issue of the commercial reasonableness of its conduct in accepting the substantial ($150,000) two-party check over a facially irregular, forged indorsement of the plaintiff payee, a noncustomer of the bank. Defendant's conclusory allegation that it "employed generally accepted commercial practices and standards in connection with the negotiation of the check" lacked any evidentiary detail and was plainly insufficient to meet its burden of proof on this issue (UCC 3-419; see, Heffernan v Norstar Bank, 125 A.D.2d 887, 890 [Levine, J.]; Tette v Marine Midland Bank, 78 A.D.2d 383, 386, appeal dismissed 54 N.Y.2d 681).
PARNESS, J.P., MILLER and McCOOE, JJ., concur.