Louis Falcigno Enterprises, Inc. v. Massachusetts Bank & Trust Co.

The question before us is whether a bank which has issued a treasurer’s or cashier’s check may, when sued by the payee, assert as defenses claims of its customer arising out of the underlying transaction for which the treasurer’s check was delivered by the bank’s customer to the payee. We hold that in the circumstances of this case the bank may not assert such defenses and that summary judgment was properly entered for the plaintiff, the payee of the cashier’s check.

An affidavit of the bank’s customer filed by the defendant indicates that the dispute between the customer and the plaintiff…