Seaboard Surety Co. v. Chase Manhattan Bank, N.A.

Order of the Supreme Court, New York County (Shirley Fingerhood, J.), entered April 3, 1990, which, inter alia, denied plaintiffs motion for summary judgment and granted defendant’s cross-motion for summary judgment, is modified, on the law, to deny the cross-motions by defendant and third-party defendant and to reinstate the complaint and otherwise affirmed without costs or disbursements.

In paying the checks herein without payee endorsement, Chase, the drawee bank, breached its contractual obligation with its customer Esty (Tonelli v Chase Manhattan Bank, 41 NY2d 667, 669). The Supreme Court…