Seaboard National Bank v. Bank of America
New York Court of Appeals
Appeal from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered March 12, 1907, affirming a judgment in favor of plaintiff entered upon a verdict directed by the court and an order denying a motion for a new trial. Three persons doing business under the firm name of E. V. Babcock & Co., at Pittsburg, Pa., were depositors in the Federal National Bank of that city.
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Appeal from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered March 12, 1907, affirming a judgment in favor of plaintiff entered upon a verdict directed by the court and an order denying a motion for a new trial. Three persons doing business under the firm name of E. V. Babcock & Co., at Pittsburg, Pa., were depositors in the Federal National Bank of that city. One Pennock was the auditor and chief bookkeeper and known by said hank to be in the employ of said firm. On September 17, 1904, said Pennock went to said bank and presented a check…
1Opinion of the CourtChase, J.
The Federal National Bank was a depositor with the plaintiff. The relation existing between a bank and a depositor being that of debtor and creditor the bank can justify a payment on the depositor’s account only upon the actual direction of the depositor. (Critten v. Chemical National Bank, 171 N. Y. 219.)
It is provided by the Negotiable Instruments Law that “ Where a signature is forged or made without authority of the person whose signature it purports to be, it is wholly inoperative, and no right to retain the instrument, or to give a discharge therefor, or to enforce payment thereof…
2Cases cited4 opinions
- Shipman v. Bank of New YorkNew York Court of Appeals · 1891
- Critten v. Chemical National BankNew York Court of Appeals · 1902
- Phillips v. Mercantile National BankNew York Court of Appeals · 1894
- Coggill v. . the American Exchange BankNew York Court of Appeals · 1847
3Cited by55 opinions
- International Aircraft Trading Co. v. Manufacturers Trust Co.New York Court of Appeals · 1948
- Standard Steam Specialty Co. v. Corn Exchange BankNew York Court of Appeals · 1917
- Hall v. Bank of BlasdellNew York Court of Appeals · 1954
- American Sash & Door Co. v. Commerce Trust Co.Supreme Court of Missouri · 1933
- People's Trust Co. v. . SmithNew York Court of Appeals · 1915
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