Tonelli v. Chase Manhattan Bank, N.A.

We affirm on the well-reasoned opinion of Mr. Justice Kirschenbaum at Special Term.

We add a brief statement concerning the attempt of the dissent to distinguish Hillsley v State Bank of Albany (24 AD2d 28) from the case at bar. Just as is done in the case before us, the defense was urged in the Hillsley case that the defendant bank was entitled to "a credit or setoff on the premise that the entire proceeds of the forged instrument were paid to Hillsley” (p 30). The court considered the authorities which the defendant bank cited and agreed that those cases did hold that recovery on a forged…