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Penny Technologies, Inc. v. Citibank, N. A.

Appellate Division of the Supreme Court of New York, First Department
Mar 12, 1998
248 A.D.2d 217 (N.Y. App. Div. 1998)

Opinion

March 12, 1998

Appeal from the Supreme Court, New York County (Charles Ramos, J.).


Plaintiff failed to rebut the expert and other evidence offered by defendant bank demonstrating that it acted in a commercially reasonable manner when it accepted for deposit checks payable to "Penny Technologies, Inc.", and endorsed simply "Penny Technologies", into the business account of Penny Technologies, under which name plaintiff's former president, James R. Penny, was certified to do business ( see, Coulter Elecs. v. Commercial Bank, 727 F.2d 1078 [11th Cir]; Kinstlinger v. Manufacturers Trust Co., 280 App. Div. 729). Plaintiff had no relationship with defendant, a collecting bank, and there was no evidence that defendant had knowledge of any facts outside the instruments that would have placed it on notice of any wrongdoing ( see, Kinstlinger v. Manufacturers Trust Co., supra). Accordingly, the IAS Court properly dismissed plaintiff's claim for conversion under UCC 3-419 (1) (c).

Concur — Ellerin, J. P., Nardelli, Williams and Mazzarelli, JJ.


Summaries of

Penny Technologies, Inc. v. Citibank, N. A.

Appellate Division of the Supreme Court of New York, First Department
Mar 12, 1998
248 A.D.2d 217 (N.Y. App. Div. 1998)
Case details for

Penny Technologies, Inc. v. Citibank, N. A.

Case Details

Full title:PENNY TECHNOLOGIES, INC., Appellant, v. CITIBANK, N. A., Respondent. (And…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Mar 12, 1998

Citations

248 A.D.2d 217 (N.Y. App. Div. 1998)
669 N.Y.S.2d 816

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