Bankers Trust Company of Western New York v. Stuart Crawford, Kutner Buick, Inc., Chalfont Industries, Inc. Appeal of Stuart Crawford

OPINION OF THE COURT

ROSENN, Circuit Judge.

This case involves conflicting claims to a cashier’s check drawn by Stuart Crawford on the Bankers Trust Company of Western New York (the Bank). Crawford mailed the check to Chalfont Industries, Inc. (Chal-font) as payment on a distributorship agreement he had entered into with Chal-font. Chalfont endorsed the check to Kut-ner Buick, which sought payment as a holder in due course. Kutner Buick was unable to collect on the check, however, because Crawford had obtained an order from a New York Supreme Court restraining payment of it.

To resolve the…