State v. Barclays Bank of New York, N. A.

OPINION OF THE COURT

Hancock, Jr., J.

In the absence of actual or constructive possession of a check, does the named payee have a right of action against the depositary bank which has paid out the proceeds over a forged indorsement? This is the question presented in plaintiffs appeal from a dismissal of its action to recover the amounts of several checks drawn by taxpayers to the order of various State taxing authorities. The checks were never delivered to plaintiff; the taxpayers’ dishonest accountant misappropriated them, and deposited them in his own account at Banker’s Trust Company of…