Rosa v. Colonial Bank

In this action the plaintiff, James Rosa, claims that the defendant, Colonial Bank (Colonial), wrongfully seized the funds he had deposited in a special account with the bank and applied them to payment of a note that he and others had executed as co-makers. The note had been made payable and delivered to the Bank of Trumbull (Trumbull) and, after its maturity, was acquired by Colonial in a merger with Trumbull. A state trial referee, Hon. James P. Doherty, acting as the trial court, held that Colonial was not a holder in due course of the instrument and that the note, therefore, was “subject…