Home Insurance v. Manufacturers Hanover Trust Co.

Order, Supreme Court, New York County (Joan Lobis, J.), entered April 29, 1993, which, insofar as appealed from, granted plaintiffs motion for summary judgment as to liability on its cause of action for conversion, unanimously affirmed, with costs.

The IAS Court correctly held that defendant’s acceptance of drafts for deposit without endorsements was commercially unreasonable as a matter of law (UCC 3-419 [1], [3]; see, Tonelli v Chase Manhattan Bank, 41 NY2d 667), and that the authority of plaintiffs agent to approve the drafts was no defense where, as here, the drafts contained no…