K-Mart Corp. v. First Pennsylvania Bank

GAFNI, J.,

In this action plaintiff K-Mart Corporation (K-Mart), is seeking to recover moneys held by defendant First Pennsylvania Bank (bank) as assignee of Penn State Mills (PSM), a bankrupt supplier of K-Mart.

The facts underlying this litigation, undisputed by the parties, are as follows. From time to time, K-Mart purchased merchandise from PSM for resale in K-Mart’s stores. PSM would deliver the goods to individual K-Mart stores. Each store would then forward the invoices to K-Mart’s headquarters for payment, together with vouchers which itemized deductions taken for defective merchandise.…