Dunnigan v. First Bank

In this appeal, we are called upon to define the meaning and scope of General Statutes § 42a-4-403 (3)1 of the Uniform Commercial Code (code) as applied to the facts of this case. The defendant bank appeals, after a court trial, from the judgment of the trial court in favor of the plaintiff, the trustee in bankruptcy of Cohn Precious Metals, Inc. (Cohn), a customer of the bank. We transferred the appeal to this court pursuant to Practice Book § 4023, and we now reverse the trial court’s judgment.

The plaintiff brought this action against the bank for wrongfully paying a check issued by Cohn…