Li-Bet Realty Corp. v. Wiener

Judgment for plaintiffs unanimously reversed, on the law and the facts and a new trial granted, with costs to abide the event. The judgment is predicated upon a complaint charging that defendant received cheeks of the corporate plaintiffs for the payment of the personal debts of the president of the corporations. There is no question but that the face of the checks gave *692notice to defendant that corporate funds were being used to pay the personal debt of their president. That placed upon defendant the duty to make inquiry to determine whether there was authorization for such use. As was said…