Stumpp v. Bank of New York

Dowling, J.:

This is an action by the appellants as depositors to recover a sum of money claimed to have been paid from their account by the respondent bank on forged checks. The bank pleaded as a defense to the first two checks that notice of the forgery was not given within a year, as provided in section 326 of the Negotiable Instruments Law. The appellants concede this defense to be valid. As a defense to the remaining forged checks the bank pleaded that the depositor was guilty of negligence in examining the statements of account rendered by the bank, which negligence contributed to the…