Manufacturers Trust Co. v. Diamond

This is the second appeal to this court involving a $500 check given to the defendant for a debt. On the prior appeal, as well as on the present, there was before the trial court the defendant’s testimony that the maker of the check had disappeared. Regardless, however, of whether the defendant changed his position, the loss should be left where it fell. "When the bank paid this check believing that its depositor had funds to meet it, despite the stamp appearing on the check that it had previously been returned for insufficient funds, the mistake was that of the bank. Its representatives were…