Evelyn Indyk and Leo Indyk, Plaintiffs-Appellees-Appellants v. Habib Bank Limited, Defendant-Appellant-Appellee

CARDAMONE, Circuit Judge:

There are two issues involved in this appeal; both are governed by New York law. The first is whether a party to whom a bank’s postdated cashier’s check is delivered takes the check as a holder in due course; we hold that under New York law it may. The second is whether the bank which issued the cashier’s check may properly assert a set-off to the amount it owes based upon a theory of unjust enrichment; we hold that under New York law applied to the facts in this case, it may not.

On February 4, 1980 plaintiffs Evelyn and Leo Indyk contracted to sell to Dome Investment…