Merrill Lynch, Pierce, Fenner & Smith, Inc. v. NCNB National Bank

OPINION

SAND, District Judge.

This is a diversity action brought by plaintiff, (“Merrill Lynch”), against the defendant, (“NCNB”), the payor or drawee bank, for the alleged unauthorized payment of a check drawn on plaintiff’s account. Defendant NCNB has brought a third-party claim against The Bank of New York (sometimes referred to as “BNY”), the depository and collecting bank, for indemnification because of BNY’s guarantees as to the validity of all endorsements on checks it submits to NCNB and because of the statutory warranties of good title it gave to NCNB under Uniform Commercial Code…