Sterling National Bank & Trust Co. v. Merchants Bank

Action instituted by plaintiff bank to recover for an erroneous payment made to the defendant bank on a promissory note delivered to it for collection. The defendant bank has cross-complained against the payee (third-party defendant) of the subject note.

Briefly, the decisive facts as the testimony revealed during the trial are as follows:

A series of four promissory notes payable to the third-party defendant were discounted by the defendant bank and the proceeds credited to said third-party defendant’s account maintained at the defendant bank. The said notes were made payable at plaintiff…