Seaboard Surety Co. v. Chase Manhattan Bank, N.A.

Summary judgment was properly granted the drawee bank, Chase Manhattan Bank, since the proceeds of the ten checks in question actually reached the person intended by the drawer, William Esty Co., Inc., to receive them. That person was Esty itself, which named itself as the payee on the checks and received the proceeds through Ms. D’Agostino, its petty cash clerk, whose authority to deposit and receive cash for the checks had been expressly communicated to the depositary bank, third party defendant Irving Trust Company. Basic principles of agency law instruct that receipt of the proceeds by…